Having learnt about it, senior students joined the project and the college managing director had approached Dassault Systemes in France for help in designing the ambulance.
The multi-role Rafale jets, built by French aerospace major Dassault Aviation, are known for air superiority and precision strikes.
Government has no option but to order joint parliamentary committee probe into Rafale deal: Congress
Congress leader Rahul Gandhi said truth cannot be silenced while former defence minister AK Antony said the the Modi government cannot escape accountability by keeping mum.
Sushen Gupta, who runs Defsys Solutions, is being investigated in the Agusta-Westland helicopter scam.
The French media report said that Dassault claimed the money was paid for 50 replicas of Rafale jets and the order was given to an Indian defence company.
A report also said that Dassault Aviation had paid about one million Euros to Defsys Solutions for 50 models of the aircraft which were to be given as 'gifts'.
The suspect payment was detected by French anti-corruption agency, Agence Française Anticorruption (AFA), during audit, revealed Mediapart.
While there was no immediate response from the BJP or the government on the charges, they have in the past denied any irregularities in the country's biggest defence deal.
Junior foreign minister Jean-Baptiste Lemoyne, fearing damage to Indo-French ties, said that the ex-French President's remarks do not help anyone and above all do not help France.
Congress was referring to reports on former France President Francois Hollande's claims regarding a private Indian firm becoming an offset partner in the intergovernmental deal for the fighter jets.
Bhushan questioned how Anil Ambani's Reliance Defence, the Indian offset partner of French firm Dassault Aviation, could be involved in the project as "most of his companies are in debt."
Indian political parties have been accusing Modi over the 2016, 36 Rafale planes from Dassault estimated to be worth $8.7 billion, saying he had overpaid for the planes and had not been transperant
The Defence Ministry said "unnecessary controversies" are being sought to be created following media reports regarding a statement purportedly made by Hollande.
Singh said the verification of the French media report, which quoted former French President Francois Hollande on the purchase of the Rafale fighter jets, will reveal the truth.
The Congress chief alleged that Nirmala Sitharaman, Manohar Parrikar and Arun Jaitley had not signed the contract and that they were all lying to protect Prime Minister Modi