France waived millions of euros in taxes for a company owned by an Indian businessman four years ago as the two countries were negotiating a military jet deal, French newspaper Le Monde reported Saturday.
New Delhi agreed in 2016 to purchase 36 Rafale jets from France but the deal has been embroiled in misconduct allegations, with the latest report coming just days after the start of India's massive election.
According to Le Monde, taxes worth a total of 143.7 million euros ($163 million) were waived in 2015 in a settlement in favour of a French firm owned by Indian billionaire Anil Ambani's Reliance Group conglomerate.
Reliance denied accusations it had benefited from "favouritism" in a statement sent to AFP and said the fiscal dispute had been resolved "within the legal framework available to all businesses operating in France".
The French embassy in New Delhi also said the settlement had been enacted "in full respect of the legal and regulatory framework" and was free of "any political interference".
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