After Rafale Deal, Anil Ambani Group Got Rs1,125 crore Tax Waiver from France: Report
French authorities have waived taxes worth 143.7 million euros (about Rs1,125 crore) for Anil Ambani's France-based company just a few months after Indian prime minister Narendra Modi announced his plans to buy 36 Rafale fighter jets from Dassault, says a report from Le Monde. 
 
According to the French newspaper report, Mr Ambani, the chief of Reliance Anil Dhirubhai Ambani (R-ADA) group, has a telecom company registered in France called Reliance Atlantic FLAG France. FLAG France owns a terrestrial cable network and other telecom infrastructure in France. 
 
"This company, investigated by French tax authorities and was found liable to pay 60 million euros in taxes for 2007 to 2010. Reliance ADA offered to pay 7.6 million euros as a settlement, which was rejected by the French tax authorities. The authorities conducted another investigation for the period 2010 to 2012 and asked for an additional 91 million euros in taxes from the company," it added. 
 
Le Monde says, in April 2015, PM Modi announced plans to buy 36 Rafale fighter jets from Dassault. By then, the total amount owed by the Reliance ADA group company to French tax authorities was at least 151 million euros. 
 
"Six months after Mr Modi's Rafale announcement, the French tax authorities accepted 7.3 million euros from Reliance Atlantic Flag as a settlement, instead of the much bigger sum of 151 million euros. So between February and October 2015, while the French were negotiating the Rafale contract with India, Mr Ambani enjoyed a tax waiver of 143,7 million euros from the French state. Quite a cozy deal, right?" the report added.
 
Reliance Communication, the R-ADA group unit, however, rubbished the Le Monde report. In a statement, the company says, "Reliance Flag tax issue pertains to 2008, nearly 10 years old. Reliance Flag says the tax demands were completely unsustainable and illegal. Reliance denies any favouritism or gain from settlement."
 
The statement added that the Reliance FLAG settled the tax disputes as per legal framework in France available to all companies operating in that country.
 
"During the period under consideration by the French tax authorities in 2008-2012 (nearly 10 years ago), FLAG France had an operating loss of Rs20 crore (2.7 million euro). French tax authorities had raised a tax demand of over Rs1,100 crore for the same period. As per the French tax settlement process as per the law, a mutual settlement agreement was signed to pay Rs56 crore as a final settlement," the company added.
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COMMENTS

AAR

3 days ago

Won't other French companies refer to this deal during their negotiation with French IT dept?

k vijaya bhaskar

5 days ago

Very clever way of conducting business deals! CAG can never compute the loss from these deals, whatever the number of methodologies it can deploy. Quid pro quo is also very difficult to prove. Congressmen were fools and liliputs. Their target was Rs 64 cr from Bofors. The present rulers do everything in wholesale, nothing retail!!

Jet union seeks FIR against Goyal, CEO Dube, SBI Chief
Annoyed over non-payment of their salaries, the employees association of Jet Airways on Friday asked the Mumbai Police to register a case against its founder and former Chairman Naresh Goyal, CEO Vinay Dube and SBI Chairman Rajnish Kumar.
 
The All India Jet Airways Officers & Staff Association in its letter said: "We call upon you to register offence under cheating, criminal breach of trust, misappropriation and other offences against the Chairman, the CEO, the representative of the State Bank of India (Bankers) as per specific provisions of Section 405 and 409 and other related Sections including 420 of IPC."
 
The Association urged the Mumbai Police to investigate the matter on an urgent basis and said that the Jet Airways staff will be forced to express its solidarity through constitutional means including "calling for a strike under the provisions of Industrial Disputes Act".
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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SACHIN K SUBRAMANYA

5 days ago

Correlation does not imply causation . Some of the media houses esp in India have taken it upon themselves to manufacture a non existent scam, at whose behest we all know. I am sure the chickens will come home to the roost soon.

Sun Pharma Senior Executive, Wife Settle Insider Trading Case during Ranbaxy Acquisition
On 11th April, SEBI passed a settlement order under which Sun Pharma group's senior executive Abhay Arvind Gandhi and his wife Kiran have settled with SEBI a case related to insider trading in shares of Ranbaxy Laboratories in 2014.
 
At the time of violation, Abhay Arvind Gandhi was the CEO of Sun Pharma Laboratories Ltd (SPLL), a wholly-owned subsidiary of Sun Pharma. Currently, Abhay Gandhi is CEO of Sun Pharma's North America business. 
 
Back in 2014, Sun Pharma had acquired Ranbaxy Laboratories in a massive $4 billion deal. During that time we had raised concerns over the sudden unusual rise in Ranbaxy stock’s volume and price over six trading days, prior to this takeover; hinting at a classic case of insider trading. (See: Insider trading in Ranbaxy?).
 
The proposed Ranbaxy deal was unpublished price sensitive information from Feb. 14, 2014 to April 6, 2014. But, Gandhi and his wife traded in Ranbaxy shares soon after Japanese major Daiichi agreed to sell Ranbaxy to Sun Pharma. And by trading in the shares of Ranbaxy during the UPSI period, both had allegedly violated prohibition of insider trading norms, as per the notices; Gandhi and Kiran traded in 454 shares and 6,770 shares, respectively, during the UPSI period.
 
Gandhi had purchased 454 shares of Ranbaxy on March 14, 2014 and sold those 454 shares on April 9, 2014. Therefore, trading in the scrip of Ranbaxy Laboratories Limited (i.e. buying during the UPSI and selling immediately after the UPSI was made public) was considered as insider trading. While, Kiran had purchased 6770 shares of Ranbaxy (3000 shares, 3570 shares and 200 shares on February 21, March 14 and March 18, 2014 respectively) and sold these 6770 shares on April 9,  2014.
 
According to SEBI, both sought to settle the adjudication proceedings initiated against them in 2017. Under SEBI’s settlement mechanism, High Powered Advisory Committee (HPAC) in its meeting on 4th March 2019, recommended that the case may be settled on payment of Rs. 35,06,250 Rupees each, which  were  approved  by  the  panel  of  the  Whole  Time  Members,  SEBI on 29th March 2019. Curiously, both Gandhi & Kiran has remitted the sum via demand draft dated 22nd February 2019 towards the settlement.
 
 
 
While settling the case, SEBI also said that enforcement actions could be initiated if any representation made by the two individuals is found to be untrue.
 
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COMMENTS

Amitabha Bhattacharjee

4 days ago

AUR EK GUJARATI, KEYA GUJARAT ME SABI ADMI CHOR HAY,HO NEHI SAKTHA

Ramesh Poapt

6 days ago

Sun ka daag re!

Jose Koshy

6 days ago

This settlement is farce and too small, they will repeat it back again. Jail term like in US must be the way forward. In case you are settling, must be some 50+X the profit made etc.

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