Air Chief Marshal Birender Singh Dhanoa on Thursday said the Rafale deal is not overpriced.
Rafale deal is a pact between India and Dassault Aviation SA's to purchase 36 Rafale fighter jets from France.
The IAF chief's statement comes days after Congress party said that a "huge scam" was brewing in the Centre over the deal.
Addressing a press conference here, IAF chief said, I think we have negotiated a better deal in the Rafale contract than what we did in MMRCA (Medium Multi-Role Combat Aircraft). There is no controversy. What is the controversy I don't understand? It is not overpriced."
He further said that the government has negotiated a very good deal.
The Congress has alleged that Modi government promoted the interest of Prime Minister's capitalist allies, by signing the Rafale aircraft agreement for purchase of 36 fighter aircrafts without following the Defence Procurement Procedure (DPP).
Addressing a press conference of Tuesday, Congress party spokesman Randeep Surjewala said that the he aircraft were being bought at an "inflated price".