Anil Ambani companies cheer SC verdict on Rafale deal

Supreme Court of India dismissed all the petitions seeking court direction for investigating the alleged scam in the procurement of 36 Rafale jets from the French company Dassault Aviation. Also, DoT agreed to issue NOC for the Rcom-RJio deal. 

The leader of opposition Indian National Congress and some petitioners had alleged that there was corruption involved in the purchase of 36 Rafale Fighter Jet from the French company Dassault Aviation. The government had also signed an agreement with the French government wherein the aircraft would be made in India and Anil Ambani’s Reliance Defence will be the Indian offset partner for the same. They questioned the selection of Reliance Defence as a partner, despite having limited exposure in the field of aeronautics.

Following the SC's decision giving a clean chit to Anil Ambani and the Narendra Modi government, the younger brother Ambani's companies or ADAG Group companies including Reliance Naval and Engineering, Reliance Telecommunication and Reliance Infrastructure were buzzing in intraday trade on Friday. 

Another development earlier in the day was that the Department of Telecom (DoT) said that it will be issuing the no-objection certificate (NOC) for the  Reliance Communications and Reliance Jio deal on a Monday with a rider that Rcom will not redeem preference shares of Reliance Realty without DoT's approval. Earlier, Reliance Realty had furnished Rs. 1,400 corporate guarantee to DoT as directed by the Supreme Court. This helped RCom gain and the stock closed at Rs. 15.77 per share, up by 2.01 per cent. 

The stock of Reliance Naval and Engineering was at Rs. 16.59 per share, up by 16.34 per cent, while Reliance Infra was at Rs. 291.85 per share, up by 1.76 per cent on Friday.