If the news about the down select is true, then the IAF prefered the Rafale and the Eurofighter once the technical trials were completed (probably earlier, but cannot be confirmed with any certainty). This must have riled the other vendors and false news was leaked about the Rafale being booted out of the competition. Now when taken at face value, this has NO bearing on the competition itself but might give the vendors an idea of who is in and who is not based on how the MoD responds. If this was just internet chatter or DDM reporting, the MoD would not intervened and stated that the Rafale is still very much in the running. But they did indeed respond and it takes a lot to happen for the MoD/GoI to clarify anything, especially in a competition of this importance.
Now on to Posina V Rao - India's Dassault Exec, think if it was the Gripen that bribed Wing Commander Thakur for a prime spot @ Aero India or if it was the MiG-35 that did the dirty deed? Do you think the IAF would have reacted in the manner it did if these aircraft were never part of the downselect? They declared P V Rao persona non grata for crying out loud - the man cannot even enter the hallowed halls of the IAF HQ in New Delhi! The IAF played it very safe because they knew what would happen otherwise - the official booting out of Dassault from the competition. And they could miss a golden opportunity to get an aircraft that got top marks from their evaluators.
When I say piece the puzzle together (I should have better worded it) what I meant was see the power play and struggle that is going on among the vendors and the extreme lengths that the IAF is going to ensure they get what they want. Sorry again.
