CAG report raises concern over Rafale deal not having sovereign guarantee
The Comptroller and Auditor General (CAG), in its report on the Rafale fighter jet deal with France, has highlighted the drawbacks of settling for a ‘Letter of Comfort’ rather than a sovereign guarantee by the French government.
The report, tabled in Parliament on Wednesday, noted that the 2007 UPA deal included a 15 per cent bank guarantee against advance payments.
Highlighting its concerns, the CAG observed that in case of a breach of agreement, India would now have to first settle the matter through arbitration directly with the French vendors.
