Anil Ambani welcomes Supreme Court judgment on Rafale

Anil Ambani. File

Anil Ambani. File   | Photo Credit: Reuters

Reliance Naval shares rise by 16% after Supreme Court refuses to intervene in Rafale jet procurement.

Reliance Group chairman Anil Ambani on Friday welcomed Supreme Court judgment on Rafale deal, as the apex court dismissed all petitions seeking probe into the deal.

“I welcome the judgment of the Hon’ble Supreme Court today, summarily dismissing all PILs filed on the Rafale contracts and conclusively establishing the complete falsity of the wild, baseless and politically-motivated allegations levelled against Reliance Group and me personally,” said Mr. Ambani adding that the Group remains committed to India’s national security and to making “our humble contribution” towards the ‘Make in India’ and ‘Skill India’ policies of the Government in the critical area of defence, including our offset partnership agreement with our valued partner, Dassault Aviation of France.

Shares of Reliance Naval and Engineering Limited (RNEL) was trading up 16% at ₹16.5 in a weak Mumbai market on Friday noon, valuing the company at ₹1,206 crore. Shares of its parent Reliance Infrastructure was also trading up 5% at Rs 300 on Friday afternoon.

The government had ordered 36 Rafale fighter jets worth about ₹60,000 crore from Dassault Aviation of France, which has chosen Anil Ambani’s firm to execute offset obligations worth ₹30,000 crore.

The opposition alleged irregularities in the purchase and the RNEL was chosen by Dassault to execute the order.

V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities said, “The SC dismissing the Rafale PIL is landmark judgment. It takes the wind out of the Opposition’s main allegation against Mr Modi. The people of Rajasthan, Madhya Pradesh and Chhattisgarh will feel cheated that they were misled by false allegations and as a result are going to vote aggressively for the BJP in the coming Lok Sabha elections next year. This reduces uncertainty for the 2019 elections and the markets are likely to make a new high even before the elections.”

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Printable version | Apr 8, 2020 11:56:31 AM |

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