The Narendra Modi-led Bharatiya Janata Party government waived off anti-corruption penalties days before signing the Rafale deal with France, The Hindu reported on Monday. The report also stated that the government overruled the recommendations from financial advisers for an escrow account after the Prime Minister’s Office forced a waiver of a sovereign or bank guarantee.

The report comes days after the publication of another report where the paper claimed that the PMO was running “parallel negotiations” with France. The earlier report had stated that the Ministry of Defence had expressed strong objections to these negotiations.

The February 11 report notes that the “standard Defence Procurement Procedure (DPP) clauses on “Penalty for use of Undue Influence, Agents/Agency Commission, and Access to Company accounts” of Dassault Aviation and MBDA France were dropped by the Indian government in the supply protocols”.

The report also states that the dissent note was signed by three members of the Indian Negotiating Team—MP Singh, Adviser (Cost), AR Sule, Financial Manager (Air), and Rajeev Verma, Joint Secretary and Acquisitions Manager (Air). The Hindu quotes the note as saying: “Notwithstanding the fact that the procurement is on Government-to-Government basis, the IGA involves ‘Transfer of Rights and Obligations’ relating to supplies of equipment and related industrial services by French Government to the French Industrial Suppliers, and the payment is also being made to the French Industrial Suppliers and not to the French Government; therefore, it is not advisable to sacrifice the basic requirement of financial prudence.”

The report also notes that the government also chose to do away with a sovereign or bank guarantee from France and settled for a letter of comfort, which is not legally binding. Read the full report here.