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Rafale Deal: How India’s Fighter Jet Purchase Became a Political Controversy

📅 Last updated: 12 November 2026⏱ 36 dated entries✎ By Nazish Fatima

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In short

Follow the Rafale deal controversy timeline: the 126-jet plan, the 2016 agreement, allegations, CAG findings, Supreme Court rulings and the French probe.

Latest Story

In April 2015 Prime Minister Narendra Modi announced in Paris that India would buy 36 Rafale fighters from France, ready to fly, in place of a long-running plan for 126 jets that Hindustan Aeronautics was to build mostly in India. The deal signed in September 2016 became one of the most bitter political fights of the decade: over the smaller number, the price, and why Dassault’s offset partner was Anil Ambani’s Reliance rather than HAL. This Rafale deal controversy timeline follows the tender, the agreement, the allegations, the CAG audit, three Supreme Court refusals to order a probe, and the separate French judicial investigation that opened in 2021.

How to read this page

Two legal tracks run through this story and must be read separately. In India, the Supreme Court declined to order an investigation; that was not a criminal trial. In France, a judicial investigation into suspected offences connected with the sale opened in June 2021; an investigation is not proof of wrongdoing. Political allegations, government explanations, audit findings and media reports are labelled as what they are.

💡 Short Answer

The Rafale deal controversy is the dispute over India’s 23 September 2016 agreement to buy 36 Rafale jets from France for about €7.87 billion, replacing a stalled plan for 126. Critics questioned the price, the smaller number and Reliance’s role as Dassault’s offset partner. India’s Supreme Court declined to order a probe in 2018 and 2019. A separate French judicial investigation opened in June 2021 and was continuing in 2026, with no charges found.

⚡ Rafale Deal at a Glance
Original plan126 jets, tender issued 28 Aug 2007; 108 to be built by HAL
Final deal36 fly-away jets, signed 23 Sep 2016, about €7.87 billion
Offset partner rowDassault Reliance Aerospace, announced 3 Oct 2016
CAG auditPackage 2.86% cheaper than audit benchmark, 13 Feb 2019
Supreme CourtNo probe: 14 Dec 2018; reviews dismissed 14 Nov 2019
FranceJudicial investigation opened 14 Jun 2021; no charges found
⚡ Quick Answers — AI Overview Ready

Rafale Deal Controversy: Key Questions

Why is the Rafale deal controversial?
Because India dropped a plan for 126 jets, mostly to be built by HAL, for 36 bought ready-made, and critics questioned the price and the choice of Anil Ambani’s Reliance as Dassault’s offset partner. The government said the old talks had stalled and the new deal was cheaper and faster.
What did the Supreme Court decide?
On 14 December 2018 it dismissed petitions for a court-monitored probe, finding no reason to doubt the process, pricing or offset choice. It dismissed review petitions on 14 November 2019. These were refusals to intervene, not a criminal verdict on corruption.
Is France investigating the Rafale deal?
Yes. A judicial investigation into suspected corruption, influence peddling and favouritism in the 2016 sale was opened on 14 June 2021 after a complaint by the NGO Sherpa. It was reported to be continuing in 2026. We found no charges.
Was the deal cheaper, as the CAG said?
The CAG found the 36-jet package 2.86% cheaper than its audit-aligned price for the earlier offer, with the basic aircraft price unchanged. It rejected the ministry’s 9% claim and did not examine the offset partner.
📚 Key Takeaways

The Rafale Controversy in Ten Points

  • The switch: a 126-jet tender from 2007 gave way to a 36-jet government-to-government deal announced on 10 April 2015.
  • The agreement: signed 23 September 2016, about €7.87 billion, with a 50% offset obligation.
  • The partner: Dassault’s joint venture with Reliance, announced 3 October 2016, became the centre of the row.
  • The remark: François Hollande was quoted in September 2018 saying India proposed Reliance; India and Dassault denied it.
  • The court: the Supreme Court refused a probe in December 2018, again on review in November 2019, and a fresh plea in August 2022.
  • The audit: the CAG found the package 2.86% cheaper but did not resolve every question.
  • The election: “Chowkidar chor hai” was a Congress slogan in 2019; the BJP won a bigger majority.
  • France: a judicial investigation opened on 14 June 2021, slowed by refusals to declassify documents.
  • The aircraft: all 36 jets were delivered by 15 December 2022.
  • Still open: no charges in India or France as of November 2026, while India negotiates for 114 more Rafales.

Two Deals for the Same Jet: 126 Versus 36

Most of the controversy comes from comparing these two arrangements.

Comparison of the two Rafale deals: the 2007 MMRCA tender sought 126 aircraft through competitive bidding, 18 fly-away and 108 to be built by HAL under licence, Rafale declared lowest bidder on 31 January 2012, no contract signed and tender withdrawn June 2015; the 2016 intergovernmental agreement bought 36 aircraft in fly-away condition for about 7.87 billion euros, signed 23 September 2016, no HAL production role, 50 percent offsets
The two arrangements side by side. Sources: Supreme Court judgment of 14 Dec 2018; CAG Report No. 3 of 2019; Ministry of Defence.

The 2007 tender was a competitive bid for 126 Medium Multi-Role Combat Aircraft. After trials, the Rafale beat the Eurofighter Typhoon on life-cycle cost in January 2012. Under that plan 18 jets would come ready-built from France and 108 would be made by HAL in Bengaluru under licence. Two years of talks failed to settle how many man-hours HAL would need and whether Dassault would guarantee jets made in India.

The 2016 agreement was different in kind. It was a deal between two governments, not a tender; it bought 36 jets ready to fly, with India-specific enhancements, weapons and support; and it gave HAL no production role. Supporters said it got urgently needed aircraft to the Air Force quickly. Critics said it bought too few jets, gave up local manufacturing, and was announced in April 2015, two months before the old tender was formally withdrawn.

Timeline: The Rafale Deal Controversy, 2007 to November 2026

Newest first. Colour shows the type of event.

ProcurementPolitics & allegationsSupreme CourtAudit & ParliamentFrench investigation

Where the controversy stands French investigation

Status as of 12 November 2026Two legal tracks, neither ending in a corruption finding

In India: The Supreme Court’s decisions of 14 December 2018 and 14 November 2019 remain the last word on the petitions for a court-ordered probe. A fresh petition based on the French reports was dismissed as withdrawn on 29 August 2022. No Indian agency has opened a criminal case into the 2016 agreement.

In France: The judicial investigation opened in June 2021 was still continuing in 2026, according to The Wire in February 2026. We found no charges against any person or company, and no court finding of corruption, in the reporting we reviewed.

Meanwhile: India is negotiating for 114 more Rafales, separately from the 2016 agreement.

French judicial investigations into arms sales often run for many years; opening one does not mean anyone will be charged.

Dassault submits a proposal for 114 more jets Procurement

Multi-Role Fighter Aircraft programmeReported proposal, no contract

What happened: Dassault Aviation was reported to have handed the Ministry of Defence a techno-commercial proposal for 114 Rafales on 6 August 2026, with most of them to be built in India.

Sticking points: Later reports said talks were held up over Indian requests for access to software and source code for the radar and electronic-warfare systems.

We found no signed contract for the 114 jets as of 12 November 2026.
12 Feb 2026

Defence Acquisition Council approves 114 Rafales in principle Procurement

Defence Acquisition Council, chaired by Rajnath SinghAcceptance of Necessity

What happened: The council granted Acceptance of Necessity for 114 Rafale fighters for the Air Force, part of a package of approvals reported at about Rs 3.6 lakh crore.

How to read it: An Acceptance of Necessity is the first formal step in Indian defence procurement, not a contract. It also has no bearing on the questions raised about the 2016 agreement.

The 114-jet plan revives, in a different form, the large Indian-built Rafale fleet that the 2007 tender had envisaged.

French investigation reported to be continuing French investigation

The WireReporting on the Paris-based probe

The report: The Wire reported that the French investigation into the 2016 sale was still active. It said investigators had questioned the actor and producer Julie Gayet, François Hollande’s partner, towards the end of 2024 about how a company linked to Anil Ambani’s group came to fund a film she co-produced.

How to read it: These are reported investigative steps. Being questioned is not an accusation. Hollande said in 2018 that the film funding had no connection with the Rafale decision.

The Wire’s report was published in the same week India approved the 114-jet proposal.
28 Apr 2025

India signs for 26 Rafale Marine jets Procurement

Intergovernmental agreementRajnath Singh and Sébastien Lecornu

The deal: India and France signed an agreement for 26 Rafale Marine aircraft for the Navy, 22 single-seat and four twin-seat, with training, weapons and support, reported at about Rs 63,000 crore.

How to read it: This is a separate purchase. It neither settles nor reopens the questions raised about the 2016 Air Force agreement.

The Navy’s jets are meant to fly from the carrier INS Vikrant.
15 Dec 2022

The last of the 36 jets lands in India Procurement

Indian Air Force“The pack is complete”

What happened: The 36th and final Rafale under the 2016 agreement landed in India after a refuelling stop with a UAE Air Force tanker. The IAF said the “pack is complete”.

Why it matters: Delivery of all 36 aircraft ran from October 2019 to December 2022.

The final aircraft had been used in France for testing the India-specific enhancements.

French judges ask India for documents French investigation

International request for judicial cooperationAs reported by Mediapart

The request: Mediapart reported that the French investigating judges sent India a formal request for judicial documents in November 2022, and later reported that India had not complied.

How to read it: This is Mediapart’s account. We did not find an Indian government statement on the request.

The judges were reported to be seeking Indian investigative records relating to the middleman Sushen Gupta.
29 Aug 2022

Supreme Court refuses a fresh probe plea Supreme Court

Chief Justice U.U. Lalit and Justice S. Ravindra BhatM.L. Sharma’s new petition

The petition: Advocate M.L. Sharma sought an investigation based on the 2021 French reports about payments to a middleman.

The order: The bench said no case was made out for it to intervene. At Sharma’s request the petition was recorded as dismissed as withdrawn. When Sharma said he could approach the CBI, the Chief Justice replied: “Nobody is stopping you.”

It was the third time the Supreme Court declined to order a Rafale probe.

Secrecy blocks access to classified documents French investigation

French defence-secrecy commission (CSDN)As reported by Mediapart

What happened: France’s defence-secrecy commission advised against declassifying documents that the judges had requested from the armed forces and foreign ministries. Reports later counted five such refusals.

How to read it: The refusals limited what the judges could see. They are not a finding about the deal either way.

In France the ministries usually follow the commission’s opinions on declassification.

Second Rafale squadron formed Procurement

No. 101 Squadron, Hasimara, West Bengal28 July 2021

What happened: The IAF formally inducted the Rafale into No. 101 Squadron, the “Falcons of Chamb and Akhnoor”, at Hasimara under Eastern Air Command.

Context: About 26 of the 36 aircraft had reached India by then.

The brief we worked from placed the second squadron in 2023–24; it was formed in July 2021.

Mediapart alleges further secret commissions French investigation

MediapartClaims about Indian agencies

The allegation: Mediapart reported that offshore companies and allegedly false invoices had been used to pay a middleman, Sushen Gupta, about €7.5 million, and that the CBI and Enforcement Directorate had documents on this from October 2018 but did not open a Rafale investigation.

The response: The BJP rejected the report, and Dassault did not comment in detail.

How to read it: These are a publication’s allegations, based on documents it says it saw. No court has ruled on them.

Mediapart reported that the payments dated from the 2007–2012 period, before the 36-jet agreement.

Judges seek classified French documents French investigation

Investigating judges, ParisTwo requests to ministries

What happened: The judges asked France’s armed forces and foreign ministries for classified documents about the negotiation of the India contract.

The requests went first to the defence-secrecy commission, which gives an opinion before any document is released.
14 Jun 2021

France opens a judicial investigation French investigation

Parquet national financier (PNF)Reported by Mediapart on 2 July 2021

What happened: France’s national financial prosecutor’s office opened a judicial investigation into suspected corruption, influence peddling, money laundering and favouritism connected with the 2016 sale. An independent investigating judge was put in charge.

Why now: It followed a second complaint by the anti-corruption group Sherpa, filed after Mediapart’s April 2021 reports. The PNF had declined to act on Sherpa’s first complaint in 2019.

How to read it: An investigation is not an accusation against any named person. The BJP said it was triggered by an NGO complaint and was not evidence of corruption; the Congress renewed its demand for a parliamentary probe.

The investigation was reported to cover decisions taken under President François Hollande, while Emmanuel Macron was economy minister.

Mediapart reports a payment flagged by France’s anti-corruption agency French investigation

Mediapart, three-part seriesAgence française anticorruption (AFA)

The allegation: Mediapart reported that AFA auditors had questioned a payment of about €1 million by Dassault, booked as “gifts to clients”, to Defsys Solutions, an Indian company linked to the family of Sushen Gupta, for 50 replica Rafale models.

The response: Dassault said its anti-corruption controls had found no violation. The Indian government dismissed the report.

How to read it: This was an audit query reported by a publication. It is not a judicial finding.

Sushen Gupta had earlier been arrested in India in the separate AgustaWestland helicopter case.
10 Sep 2020

Formal induction at Ambala Procurement

Defence Ministers Rajnath Singh and Florence Parly

What happened: The Rafale was formally inducted into the Indian Air Force at Ambala, in No. 17 Squadron, the “Golden Arrows”.

The ceremony took place during the military standoff with China in eastern Ladakh.
29 Jul 2020

First five Rafales land at Ambala Procurement

Flown from France with air-to-air refuelling

What happened: The first five aircraft flew from Mérignac in France, with a stop in the UAE, and landed at Ambala Air Force Station.

They were assigned to No. 17 Squadron, which had been revived for the Rafale in 2019.
14 Nov 2019

Review petitions dismissed Supreme Court

Chief Justice Ranjan Gogoi, Justices S.K. Kaul and K.M. JosephMajority by Justice Kaul

The ruling: The court found no grounds to review its December 2018 judgment and again declined to order an investigation.

Justice Joseph’s opinion: Agreeing that the reviews failed, Justice Joseph wrote separately that the verdict would not prevent the CBI from acting on the petitioners’ complaint, subject to prior approval under Section 17A of the Prevention of Corruption Act.

Same day: The court closed the contempt case against Rahul Gandhi for attributing his “chowkidar chor hai” slogan to the court, after his unconditional apology, and told him to be more careful.

The Congress read Justice Joseph’s opinion as an opening for a criminal probe; the government pointed to the unanimous dismissal.
8 Oct 2019

First Rafale handed over in France Procurement

Mérignac, near BordeauxRajnath Singh receives the aircraft

What happened: Defence Minister Rajnath Singh received the first Rafale for India at Dassault’s facility, on Dussehra, and performed a shastra puja on the aircraft.

The jet carried the tail number RB-001, after Air Chief Marshal R.K.S. Bhadauria, who had flown the Rafale during evaluation.
8 May 2019

Rahul Gandhi apologises to the Supreme Court Politics & allegations

Contempt petition by BJP MP Meenakshi Lekhi

What happened: In his third affidavit, Rahul Gandhi tendered an unconditional apology for wrongly attributing the “chowkidar chor hai” slogan to the Supreme Court after its 10 April order.

The campaign slogan was a centrepiece of the Congress’s 2019 Lok Sabha campaign.
10 Apr 2019

Court allows the leaked documents to be considered Supreme Court

Preliminary objection rejectedUnanimous

What happened: The government had argued that documents published by The Hindu and others were privileged and had been taken from the defence ministry without authorisation. The court rejected that objection and said it would hear the review petitions on their merits.

The ruling decided only whether the documents could be relied on, not what they proved.
13 Feb 2019

CAG report tabled in Parliament Audit & Parliament

Report No. 3 of 2019Capital acquisition in the Indian Air Force

The finding: The Comptroller and Auditor General found the 36-aircraft package 2.86% cheaper than its “audit-aligned” price for the earlier MMRCA offer. The price of the basic fly-away aircraft was the same; savings were in India-specific enhancements, support and weapons.

What it rejected: The CAG did not accept the defence ministry’s claim that the deal was 9% cheaper.

What it did not do: The report gave prices in redacted form and did not examine the choice of offset partner.

The government said the report vindicated it; opposition parties called it incomplete.
8 Feb 2019

Report on “parallel negotiations” Politics & allegations

The HinduDefence ministry note of November 2015

The report: The Hindu published a defence ministry note in which officials objected that discussions held by the Prime Minister’s Office with the French side undermined the position of the Indian Negotiation Team.

The response: Defence Minister Nirmala Sitharaman said the publication left out the then minister Manohar Parrikar’s note that the concern was an “overreaction” and that the PMO was only monitoring progress.

This note was among the documents the government later argued could not be used in court.

Review petitions filed Supreme Court

Yashwant Sinha, Arun Shourie and Prashant Bhushan

What happened: The petitioners asked the court to review its December judgment, arguing that it relied on an incorrect statement that the CAG report on pricing had already been examined by Parliament’s Public Accounts Committee.

The government: The Centre had already asked the court to correct that sentence, saying it had been misread.

Other petitioners, including AAP MP Sanjay Singh, also sought review.
14 Dec 2018

Supreme Court dismisses pleas for a probe Supreme Court

Chief Justice Ranjan Gogoi, Justices S.K. Kaul and K.M. JosephManohar Lal Sharma v. Narendra Damodardas Modi

The ruling: The court said it found no reason to doubt the decision-making process, that it was not its job to compare prices, and that it found no material showing commercial favouritism in the choice of offset partner. It dismissed all the petitions.

The limit: The court stressed that judicial review of defence contracts is limited. It ruled on whether to intervene; it was not a criminal trial and no one was acquitted or convicted.

The judgment was written by Chief Justice Gogoi for a unanimous bench.

Government gives the court sealed-cover details Supreme Court

Orders of 10 and 31 October 2018Hearing on 14 November 2018

What happened: On 10 October the court asked for the decision-making steps, in a sealed cover, saying it was not examining price or technical suitability. On 31 October it asked for pricing details too. The government filed them in November, with a public note on the process, and the court reserved judgment after a hearing on 14 November.

Senior IAF officers were called to answer the bench’s questions during the hearing.

Hollande’s remark sets off the biggest row Politics & allegations

Mediapart, 21 September 2018

The remark: Former French president François Hollande was quoted as saying that India had proposed Reliance as the offset partner and France “did not have a choice”.

The responses: The Indian government said it had no role in the choice of a commercial partner. Dassault said it had chosen Reliance itself, and the French government said French companies pick their own Indian partners. Hollande later said only Dassault could comment on how the choice was made.

Three conflicting accounts from those involved became the core of the political dispute.

First petition to stay the deal listed Supreme Court

Advocate Manohar Lal SharmaSupreme Court

What happened: On 5 September the court agreed to hear Sharma’s plea for a stay and a court-monitored investigation. Further petitions followed, from advocate Vineet Dhanda, AAP MP Sanjay Singh and, in October, Yashwant Sinha, Arun Shourie and Prashant Bhushan.

A plea seeking an independent probe had been reported in March 2018, but the court took up the matter in earnest only in September and October.
7 Feb 2018

Defence ministry defends the agreement Politics & allegations

Press Information BureauStatement during the Budget Session

The statement: The ministry said the purchase followed the Defence Procurement Procedure, that its terms were better than the earlier “notionally negotiated” offer in capability, price, equipment, delivery and maintenance, and that giving a detailed price would reveal the aircraft’s weapons fit.

The opposition had demanded that the government disclose the price per aircraft.
3 Oct 2016

Dassault and Reliance announce a joint venture Politics & allegations

Dassault Reliance Aerospace Limited (DRAL)Nagpur

The announcement: Dassault Aviation’s Eric Trappier and Reliance Group’s Anil Ambani announced a joint venture to help carry out Dassault’s offset obligations, with a plant at Mihan in Nagpur. Reliance was to hold 51%.

The criticism: Critics pointed out that Reliance Defence had been set up only in 2015, shortly before the April announcement, and had no aircraft-making record, unlike the state-owned HAL.

Offset partners are chosen by the foreign vendor; the government said it was not required to approve the choice at that stage.
23 Sep 2016

Intergovernmental agreement signed Procurement

Manohar Parrikar and Jean-Yves Le DrianNew Delhi

The agreement: India and France signed an agreement for 36 Rafales in fly-away condition, with India-specific enhancements, weapons and five years of support. The value was reported at about €7.87 billion, roughly Rs 58,000–59,000 crore at the time.

Offsets: The vendors were required to invest 50% of the value in India as offsets.

The deal was approved by the Cabinet Committee on Security a month earlier, in August 2016.

Negotiations begin; the old tender is withdrawn Procurement

Indian Negotiation TeamRFP for 126 aircraft withdrawn

What happened: The Defence Acquisition Council cleared the 36-jet purchase and an Indian Negotiation Team began talks with the French side in May 2015. The 2007 request for proposal was formally withdrawn in June 2015.

The criticism: The Supreme Court later noted that the April announcement came before the old tender was withdrawn, though it found no reason to intervene.

Negotiations took about 14 months.
10 Apr 2015

Modi announces 36 Rafales in Paris Politics & allegations

Narendra Modi and François HollandeJoint statement

The announcement: During a visit to France, the Prime Minister announced that India would buy 36 Rafales in fly-away condition through a government-to-government agreement, citing the Air Force’s “critical operational necessity”.

Why it was controversial: It replaced the plan for 126 jets, most of them to be built by HAL. The critics’ questions about price, numbers and offsets all start here.

In late March 2015 Dassault’s chief executive had said the 126-jet negotiations were nearly complete.

Talks over the 126-jet contract stall Procurement

Dassault and HAL

The sticking point: Of the 126 aircraft, 18 were to come ready-built from France and 108 to be made by HAL. Dassault and HAL could not agree on man-hours and on who would answer for the quality of jets made in India.

The result: No contract was signed under the UPA government, which left office in May 2014.

The government later told the Supreme Court that these unresolved issues were a reason for switching to a smaller government-to-government deal.
31 Jan 2012

Rafale declared the lowest bidder Procurement

L1 on life-cycle costEurofighter Typhoon L2

What happened: The defence ministry declared Dassault’s Rafale the lowest bidder for the 126-aircraft contract.

How to read it: Being L1 meant contract negotiations could begin. It did not mean a contract had been agreed.

The contract was then valued at about $10.4 billion.

Two fighters shortlisted Procurement

After field trials in 2009–10

What happened: After technical evaluation and flight trials, the Air Force shortlisted the Rafale and the Eurofighter Typhoon. Boeing, Lockheed Martin, Saab and MiG were eliminated.

Some summaries place the shortlist in 2009–10; that was when the trials took place.
28 Aug 2007

Tender issued for 126 fighters Procurement

Medium Multi-Role Combat Aircraft (MMRCA)Six bidders

What happened: The ministry issued a request for proposal for 126 aircraft. Six manufacturers bid: Dassault, Eurofighter, Boeing, Lockheed Martin, Saab and Russia’s MiG.

The background: The Air Force had sought a new medium fighter since the early 2000s to replace its ageing fleet.

It was then one of the largest fighter competitions in the world.

From Announcement to Signature, 2015–2016

Seventeen months that turned a tender into a government deal.

Sequence 2015 to 2016: late March 2015 Dassault says 126-jet talks nearly complete; 10 April Modi announces 36 Rafales in Paris; May Indian Negotiation Team begins talks; June the 2007 tender is withdrawn; August 2016 Cabinet Committee on Security approves; 23 September 2016 agreement signed; 3 October 2016 Dassault and Reliance announce a joint venture
How the 36-jet deal took shape. Sources: Supreme Court judgment (2018); government note to the court (Nov 2018); Reliance Infrastructure release (3 Oct 2016).

The government’s note to the Supreme Court in November 2018 set out the sequence: an announcement in Paris on 10 April 2015, clearance by the Defence Acquisition Council, about 14 months of negotiation by an Indian Negotiation Team, approval by the Cabinet Committee on Security and signature on 23 September 2016. Critics fixed on the order of events, since the announcement came before the 126-jet tender was formally withdrawn in June 2015, and on a defence ministry note, published in 2019, objecting to parallel talks by the Prime Minister’s Office.

The Five Main Allegations, and the Answers Given

What critics said, what the government said, and what any institution found.

AllegationGovernment’s answerWhat institutions found
Why 36 jets, not 126?Old talks had stalled; the Air Force needed jets urgentlySupreme Court did not question the need for the aircraft
Was the price inflated?Better terms; packages not directly comparableCAG: 2.86% cheaper overall; basic aircraft price the same
Why Reliance, not HAL?Vendor picks offset partners; no government roleSupreme Court found no material showing commercial favouritism
Were offsets transparent?Offsets followed the 2016 procurement rulesNot examined in detail by the CAG; part of the French inquiry’s subject
Did the PMO undercut negotiators?PMO only monitored progressCourt allowed the leaked note to be considered, then dismissed the reviews

Offsets, Reliance and the Hollande Remark

The part of the story that turned a procurement debate into a political storm.

Offset dispute: 50 percent of the deal value to be reinvested in India; Dassault and Reliance announce the DRAL joint venture on 3 October 2016 with Reliance holding 51 percent; Francois Hollande quoted on 21 September 2018 saying India proposed Reliance; India says it had no role, Dassault says it chose Reliance itself; Supreme Court on 14 December 2018 finds no material showing commercial favouritism
Three accounts of one decision. Sources: Reliance Infrastructure (2016); Mediapart (2018); Ministry of Defence; Supreme Court.

The agreement required Dassault and its suppliers to reinvest half the contract value in India. Under the rules in force, the foreign vendor chose its Indian offset partners and did not need government approval for them at signing. On 3 October 2016 Dassault and Reliance announced a joint venture, Dassault Reliance Aerospace, with a plant at Nagpur. Reliance Defence had been set up only in 2015, which critics contrasted with HAL’s decades of building aircraft.

The row peaked on 21 September 2018, when Mediapart quoted François Hollande as saying the Indian government had proposed Reliance and France “did not have a choice”. India denied any role, Dassault said the choice was its own, and Hollande later said only Dassault could explain it. The Supreme Court said in December 2018 that it found no material showing commercial favouritism by the government. Those competing accounts have never been tested in a trial.

What the CAG Audit Found

A specific price comparison, not a verdict on every allegation.

CAG Report No. 3 of 2019, tabled 13 February 2019: 36-aircraft package 2.86 percent cheaper than the audit-aligned price of the earlier offer; basic fly-away aircraft price the same; India-specific enhancements about 17 percent cheaper; ministry claim of 9 percent saving not accepted; prices published in redacted form; offset partner choice not examined
The audit in numbers. Source: CAG Report No. 3 of 2019; reporting by The Quint, The Wire and Business Today.

The Comptroller and Auditor General tabled its report on Air Force capital acquisitions on 13 February 2019, the last day of the Budget Session. It built an “audit-aligned” price for the 2007 offer and found the 2016 package 2.86% cheaper overall. The basic aircraft cost the same; India-specific enhancements were about 17% cheaper; some other items cost more. The CAG did not accept the defence ministry’s figure of a 9% saving, and it published prices only in redacted form. The government said the report vindicated it. Opposition parties called it incomplete, pointing out that it did not deal with the offset partner.

The Indian Legal Track: Three Refusals to Order a Probe

Why the Supreme Court’s rulings are not a criminal acquittal.

Supreme Court track: 5 September 2018 first plea listed; 10 October 2018 court seeks decision-making details in a sealed cover; 31 October pricing details sought; 14 December 2018 petitions dismissed; 10 April 2019 objection to leaked documents rejected; 14 November 2019 reviews dismissed, Justice Joseph says CBI may act with sanction; 29 August 2022 fresh plea dismissed as withdrawn
The Supreme Court track. Sources: Supreme Court judgments and orders; LiveLaw; Bar & Bench; Supreme Court Observer.

The petitions asked the court to stop the deal or order an investigation. Hearing them, a bench led by Chief Justice Ranjan Gogoi took the decision-making details and the price in sealed covers, and on 14 December 2018 dismissed the petitions. It said judicial review of defence contracts is limited, that comparing prices was not its job, and that it had found no reason to doubt the process or material showing favouritism.

The review petitions were dismissed on 14 November 2019. In a separate opinion, Justice K.M. Joseph said the judgment did not stop the CBI from acting on the petitioners’ complaint if it obtained approval under Section 17A of the Prevention of Corruption Act. No such investigation was opened. A third plea, based on the 2021 French reports, was dismissed as withdrawn on 29 August 2022. None of these was a trial, and none produced a finding that anyone was innocent or guilty of a crime.

The French Legal Track: An Investigation, Not a Verdict

What has been reported since 2021, and what has not happened.

French investigation: April 2021 Mediapart reports a payment questioned by the anti-corruption agency AFA; 14 June 2021 judicial investigation opened after a complaint by Sherpa; September 2021 judges request classified documents; refusals to declassify follow, five reported; November 2022 request to India for documents; late 2024 Julie Gayet questioned, according to The Wire; February 2026 investigation continuing; no charges found
The French track. Sources: Mediapart as reported by The Wire, Deccan Herald and ThePrint; Sherpa; The Wire (Feb 2026).

France’s anti-corruption agency, in an audit of Dassault, queried a payment of about €1 million booked as “gifts to clients” to an Indian company linked to the middleman Sushen Gupta, Mediapart reported in April 2021. The NGO Sherpa filed a new complaint, and on 14 June 2021 the national financial prosecutor’s office opened a judicial investigation under an independent judge into suspected corruption, influence peddling, money laundering and favouritism. In November 2021 Mediapart reported further alleged payments of about €7.5 million and said Indian agencies had held documents on them since 2018.

Since then, reported progress has been slow. The defence-secrecy commission advised against releasing classified documents the judges requested, and Mediapart reported that India had not answered a request for judicial documents sent in November 2022. In February 2026 The Wire reported the investigation was still active. As of 12 November 2026 we found no charges against any person or company and no court finding of corruption.

Where Things Stand in November 2026

Status as of 12 November 2026: India, Supreme Court refused probes in 2018, 2019 and 2022, no criminal case registered; France, judicial investigation opened June 2021 reported continuing in 2026, no charges found; aircraft, all 36 delivered by 15 December 2022; Navy, 26 Rafale Marine signed 28 April 2025; Air Force, 114 Rafales approved in principle 12 February 2026, no contract found
The position today. Sources: Supreme Court; The Wire (Feb 2026); Indian Air Force; Ministry of Defence.

The 36 jets are in service with two squadrons, and both the Navy and Air Force have since chosen more Rafales. The political argument has quietened but the legal picture is unchanged: Indian courts have declined to order an inquiry, and the French investigation has not reached charges. Any final French judicial step would be the first independent legal test of the allegations about payments and partners.

What Each Institution Decided

InstitutionWhat happenedWhat it did not establish
Supreme Court, 14 Dec 2018Dismissed petitions seeking a probeNo criminal trial, conviction or acquittal
CAG, 13 Feb 2019Package 2.86% cheaper than its audit benchmarkDid not examine the offset partner choice
Supreme Court, 14 Nov 2019Dismissed review petitionsJustice Joseph left room for a CBI probe with sanction
Supreme Court, 29 Aug 2022Fresh plea dismissed as withdrawnDid not examine the French reports on merits
French PNF, Jun 2021Opened a judicial investigationOpening a probe is not proof of guilt
Dassault AviationSaid it chose Reliance itselfA company statement, not a finding

Key People and Organisations

Person or bodyRole
Narendra ModiPrime Minister; announced the 36-jet purchase in April 2015
François HollandeFrench President 2012–2017; quoted in 2018 on Reliance
Manohar ParrikarDefence Minister who signed the agreement
Nirmala SitharamanDefence Minister who defended the deal in 2018–19
Dassault AviationMaker of the Rafale; chose Reliance as a partner
Reliance Defence / Anil AmbaniPartner in the DRAL joint venture
HALState-owned maker due to build 108 jets under the old plan
Rahul GandhiCongress leader who led the political attack
Yashwant Sinha, Arun Shourie, Prashant BhushanPetitioners in the Supreme Court
Sherpa and MediapartFrench NGO whose complaint led to the probe; publication that reported the allegations

The Impact of the Rafale Controversy

  • Defence became electoral politics: the deal was a central issue in the 2019 Lok Sabha campaign.
  • Offsets under scrutiny: the row drew attention to how foreign vendors pick Indian partners and how offsets are audited.
  • Make in India debate: dropping HAL’s production role sharpened the argument over building fighters at home; the 114-jet plan now promises most aircraft made in India.
  • Limits of judicial review: the Supreme Court made clear it would not second-guess defence pricing or technical choices without strong grounds.
  • Sealed covers and secrecy: the case became a reference point in the debate over sealed-cover hearings and confidentiality in court.
  • The relationship held: India and France signed for 26 Rafale Marine jets in 2025 and began talks on 114 more in 2026.

Rafale is often compared with earlier defence-procurement rows, notably the Bofors scandal and the AgustaWestland helicopter case, in which the same middleman, Sushen Gupta, was arrested. For the wider policy context, see our timeline on India’s defence imports and self-reliance.

Explore More Timelines

People Also Ask

What is the Rafale deal controversy?
It is the political and legal dispute over India's 2016 agreement to buy 36 Rafale fighters from France. Critics questioned why a 126-jet plan was dropped, how the price compared and why Reliance became Dassault's offset partner. India's Supreme Court declined to order a probe; a separate French judicial investigation opened in 2021.
Did the Supreme Court give a clean chit in the Rafale case?
It dismissed the petitions seeking a court-monitored probe on 14 December 2018 and dismissed review petitions on 14 November 2019, saying it found no reason to doubt the process, pricing or offset choice. That was a refusal to intervene, not a criminal trial, and Justice K.M. Joseph noted the CBI could still act with sanction.
Is the Rafale deal being investigated in France?
Yes. France's national financial prosecutor's office opened a judicial investigation on 14 June 2021 into suspected corruption, influence peddling and favouritism in the 2016 sale, after a complaint by the NGO Sherpa. It was reported to be continuing in 2026. No charges or findings were found in the reporting we reviewed.
What did the CAG say about the Rafale deal?
The CAG's Report No. 3 of 2019, tabled on 13 February 2019, found the 36-jet package 2.86% cheaper than its audit-aligned price for the earlier offer. The basic aircraft price was the same. It rejected the ministry's 9% figure and did not examine the offset partner.
Why was Reliance chosen as Dassault's offset partner?
Dassault and Reliance announced a joint venture on 3 October 2016. Dassault said it chose Reliance itself and the Indian government said it had no role. In September 2018 former French president Francois Hollande was quoted saying India proposed Reliance. The accounts conflict, and no court has found that the government directed the choice.
How many Rafale jets does India have?
The Air Force received all 36 jets under the 2016 agreement between October 2019 and 15 December 2022, split between squadrons at Ambala and Hasimara. The Navy signed for 26 Rafale Marine jets in April 2025, and a proposal for 114 more Air Force jets was approved in principle in February 2026.

Frequently Asked Questions

Based on court records, the CAG report and reporting to 12 November 2026.

When was the Rafale deal signed?
The intergovernmental agreement for 36 Rafale jets was signed in New Delhi on 23 September 2016 by Defence Minister Manohar Parrikar and his French counterpart Jean-Yves Le Drian. Prime Minister Narendra Modi had announced the purchase in Paris on 10 April 2015.
How much did the Rafale deal cost?
The 2016 agreement was reported at about 7.87 billion euros, widely given as Rs 58,000 to 59,000 crore. That figure covers 36 aircraft, India-specific enhancements, weapons, support equipment and performance-based logistics, not just the jets themselves, which is why simple per-plane comparisons with the earlier offer were disputed.
Why did India buy 36 Rafales instead of 126?
The government said negotiations on the 126-jet tender, under which HAL would build 108 aircraft, had stalled over costs and responsibility for Indian-built jets, and that the Air Force urgently needed fighters. Critics said 36 jets were too few and that dropping local production hurt Indian industry.
What was the MMRCA tender?
The Medium Multi-Role Combat Aircraft tender, issued on 28 August 2007, sought 126 fighters. Six makers bid. The Rafale and Eurofighter Typhoon were shortlisted in April 2011, and the Rafale was declared the lowest bidder on 31 January 2012. No contract was signed, and the tender was withdrawn in June 2015.
What role did HAL play in the Rafale controversy?
Under the 126-jet plan, state-owned Hindustan Aeronautics Limited was to build 108 of the aircraft under licence. The 2016 deal for 36 fly-away jets had no HAL production role. Critics argued HAL lost a major opportunity; the government said Dassault and HAL had not agreed on terms.
What is an offset in a defence deal?
An offset obliges a foreign seller to spend part of the contract value in the buyer's country, through manufacturing, purchases, investment or technology. The 2016 Rafale agreement carried a 50% offset obligation. Under the rules then, the foreign vendor chose its Indian offset partners.
What is Dassault Reliance Aerospace Limited?
DRAL is a joint venture of Dassault Aviation and Anil Ambani's Reliance group, announced on 3 October 2016, with Reliance holding 51%. It set up a facility at Mihan in Nagpur to make parts, as part of Dassault's offset work. Its formation became a central point of the controversy.
What did Francois Hollande say about Reliance?
In an interview reported by Mediapart on 21 September 2018, Hollande was quoted as saying the Indian government proposed Reliance and France did not have a choice. India denied any role. Dassault said it chose Reliance itself, and Hollande later said only Dassault could explain how the choice was made.
What did the Supreme Court decide on 14 December 2018?
A bench of Chief Justice Ranjan Gogoi and Justices S.K. Kaul and K.M. Joseph dismissed petitions seeking a probe into the 36-jet purchase. It found no reason to doubt the decision-making process, said comparing prices was not its role, and found no material showing commercial favouritism in the offset choice.
What happened in the Rafale review petitions?
Yashwant Sinha, Arun Shourie and Prashant Bhushan sought review in January 2019. On 10 April 2019 the court rejected the government's objection to leaked documents. On 14 November 2019 it dismissed the review petitions, with Justice K.M. Joseph writing separately that the CBI could act with prior sanction.
What did Justice K.M. Joseph say about Rafale?
In a separate opinion on 14 November 2019, Justice Joseph agreed the review petitions failed but said the judgment did not stop the CBI from acting on the petitioners' complaint, subject to approval under Section 17A of the Prevention of Corruption Act. No such investigation was opened.
Was Rahul Gandhi held in contempt over Rafale?
No. BJP MP Meenakshi Lekhi filed a contempt petition after Rahul Gandhi attributed his 'chowkidar chor hai' slogan to the Supreme Court in April 2019. He apologised unconditionally on 8 May 2019, and the court closed the case on 14 November 2019, telling him to be more careful.
What was the leaked documents issue?
In early 2019 The Hindu published defence ministry notes, including one objecting to parallel talks by the Prime Minister's Office. The government argued in court that the documents were privileged and improperly taken. On 10 April 2019 the Supreme Court ruled they could be considered in the review.
What were the parallel negotiations allegations?
A November 2015 defence ministry note, published by The Hindu on 8 February 2019, said PMO discussions with the French side weakened the Indian Negotiation Team's position. The government pointed to Manohar Parrikar's note calling that an overreaction and said the PMO was only monitoring progress.
Did the CAG find the Rafale deal cheaper?
Yes, by 2.86% overall against its own audit-aligned benchmark for the earlier offer. The basic aircraft price was identical; India-specific enhancements were about 17% cheaper and some items cost more. The CAG rejected the defence ministry's claim of a 9% saving and published prices only in redacted form.
Why did the French investigation start?
Mediapart's April 2021 reports said France's anti-corruption agency had questioned a payment by Dassault to an Indian middleman's company. The NGO Sherpa then filed a fresh complaint, and the national financial prosecutor's office opened a judicial investigation on 14 June 2021 under an independent judge.
Who is Sushen Gupta?
Sushen Gupta is a defence middleman named in Mediapart's reports, which alleged that Dassault paid companies linked to him, including about 1 million euros to Defsys Solutions for model aircraft. He had earlier been arrested in India in the AgustaWestland case. The Rafale allegations against him have not been tested in court.
Has anyone been charged over the Rafale deal?
No. As of 12 November 2026 we found no charges in India or France relating to the 2016 agreement. India's Supreme Court declined to order a probe, and the French judicial investigation was still at the investigation stage in the reporting we reviewed.
What did the Supreme Court do in August 2022?
On 29 August 2022 a bench of Chief Justice U.U. Lalit and Justice S. Ravindra Bhat declined a fresh petition by advocate M.L. Sharma seeking a probe based on the French reports, saying no case was made out. At his request the petition was recorded as dismissed as withdrawn.
Why are French documents hard to get?
Investigating judges asked the French armed forces and foreign ministries for classified records in September 2021. The defence-secrecy commission advised against declassification, and reports counted five refusals. The judges were also reported to have sought documents from India in November 2022.
When did the Rafale jets arrive in India?
The first aircraft was handed over in France on 8 October 2019. The first five landed at Ambala on 29 July 2020, were formally inducted on 10 September 2020, and the 36th and last jet landed on 15 December 2022.
Which squadrons fly the Rafale?
No. 17 Squadron, the Golden Arrows, at Ambala received the first jets in 2020. No. 101 Squadron, the Falcons of Chamb and Akhnoor, was formed with Rafales at Hasimara in West Bengal on 28 July 2021. Each squadron has about 18 aircraft.
What is the Rafale Marine deal?
On 28 April 2025 India and France signed an agreement for 26 Rafale Marine fighters for the Navy, 22 single-seat and four twin-seat, reported at about Rs 63,000 crore. It is a separate purchase from the 2016 Air Force agreement and does not settle any question about it.
Is India buying more Rafales?
The Defence Acquisition Council approved a proposal for 114 Rafales for the Air Force on 12 February 2026. Dassault was reported to have submitted a proposal in August 2026. We found no signed contract as of 12 November 2026, and reports described disagreements over software access.
Did the Rafale deal become an election issue?
Yes. The Congress made it a centrepiece of its 2019 Lok Sabha campaign, with Rahul Gandhi's 'chowkidar chor hai' slogan. The BJP cited the Supreme Court and CAG findings in response and won the election with a larger majority.
What is the difference between the Indian and French cases?
The Indian proceedings were petitions asking the Supreme Court to order an investigation; the court declined. The French case is a criminal judicial investigation into suspected offences connected with the sale. They involve different courts, laws and questions, and neither has produced a finding of corruption.
Was the Rafale deal a government-to-government deal?
Yes. The 2016 purchase was made through an intergovernmental agreement between India and France, unlike the 2007 tender, which was a competitive bid. The French government gave a letter of comfort rather than a sovereign guarantee, a point critics raised.
What did the government say in its 2018 statement?
On 7 February 2018 the defence ministry said the deal followed the Defence Procurement Procedure and secured better terms than the earlier, notionally negotiated offer in capability, price, equipment, delivery and maintenance. It declined to give itemised prices, citing the security of weapons details.
What was Sherpa's role?
Sherpa is a French anti-corruption NGO. It filed a complaint in 2018 that the prosecutor's office did not pursue, then a second complaint after Mediapart's April 2021 reports. That second complaint led to the judicial investigation opened in June 2021.
What is the legacy of the Rafale controversy?
It brought defence procurement into electoral politics, sharpened scrutiny of offset partners, tested how far courts will review defence contracts, and fed a long debate about making fighters in India. The Air Force and Navy have since chosen more Rafales despite it.

⚠️ Editorial Note

This timeline separates political allegations, government explanations, audit findings, court decisions and the French investigation, and does not present any allegation against a person or company as established wrongdoing. Mediapart’s reports are attributed to Mediapart. We corrected several details found in common summaries: the Rafale and Eurofighter were shortlisted in April 2011 (the 2009–10 dates are the flight trials); the first petition was taken up in September 2018; the second Rafale squadron was formed in July 2021, not 2023–24; and the Supreme Court also declined a third plea in August 2022. We could not confirm the exact date of the Defence Acquisition Council’s 2015 clearance, or details of any French investigative step after February 2026. This page will be updated if the French investigation produces a verifiable judicial development.

Related Reading on AiTimeline

Sources & further reading

Every dated entry above was checked against these references. Last reviewed 12 November 2026.

  1. Manohar Lal Sharma v. Narendra Damodardas Modi: Supreme Court judgment of 14 December 2018
  2. Rafale fighter jet deal: case page, orders and judgments in plain English
  3. SC dismisses Rafale review but Justice Joseph says CBI can still take lawful action (14 November 2019)
  4. Breaking: SC dismisses Rafale review petitions (14 November 2019)
  5. Supreme Court refuses to entertain PIL seeking probe into Rafale deal based on reports of French agency (29 August 2022)
  6. Rafale price negotiated by Modi govt cheaper than UPA's: CAG (13 February 2019)
  7. Dassault Aviation and Reliance Infrastructure form joint venture in India: media release (3 October 2016)
  8. India's Rafale deal under scanner in France, judge appointed to probe alleged corruption (July 2021)
  9. Rafale deal faces new row as report says Dassault paid 1 mn euros as gift to Indian middleman (April 2021)
  10. Military secrecy gets in the way of French judges' Rafale sale probe: report
  11. Exclusive: As India looks to buy 114 Rafales, French prosecutors continue probe into earlier deal (February 2026)
  12. The pack is complete, says IAF as last of 36 Rafale jets land in India (15 December 2022)
  13. IAF inducts second squadron of Rafale aircraft at Hasimara airbase (28 July 2021)
  14. India and France finalise deal for 26 Rafale-M jets (28 April 2025)
  15. India clears procurement of 114 Rafale jets, other acquisition projects totalling Rs 3.6 lakh crore (12 February 2026)
  16. SC closes contempt plea against Rahul Gandhi (14 November 2019)

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