Devas Multimedia has seized $87,457.47 cash that ISRO's commercial arm Antrix Corporation held in the US as it looked to enforce a $1.2 billion compensation it had won over a cancelled satellite deal, its lawyer said on Wednesday. Devas Multimedia America Inc had sought seizure of $145,000 but the actual recovery was $87,457.47 (a little less than Rs 70 lakh). This came after it secured a favourable order from the Eastern District Court of Virginia, Matthew D McGrill said.
One of the advisors to Devas said the company should seek a legal option.
Unfazed by the Supreme Court upholding winding up of the company, shareholders of Devas Multimedia will continue to seek seizure of Indian government assets abroad to collect $1.2 billion the firm has been awarded by arbitration tribunals for cancellation of a satellite deal but are open for talks to settle the issue, their counsel said. "The decision by the Supreme Court does not change anything. The Modi government and the Indian courts cannot rewrite the facts. "Their flimsy allegations of fraud will never stand up in courts outside of India," said Matthew D McGill, partner at Gibson, Dunn & Crutcher, and lead counsel for several Devas' shareholders.
A French court has ordered freezing of an Indian government property in Paris on a plea by Devas shareholders who are seeking to enforce a USD 1.3 billion arbitration award over a cancelled satellite contract, according to the court order copy.
Amid its standoff with Antrix, Devas Multimedia has witnessed a change of guard at the helm with former Indian Space Research Organisation official M G Chandrasekhar stepping down as chairman of the company.
The government will use the Supreme Court order calling the 2005 deal between ISRO's commercial arm Antrix and privately-owned Devas Multimedia a fraud, to counter seizure of its properties, Finance Minister Nirmala Sitharaman said on Tuesday as she launched a blistering attack on the Congress for handing over airwaves used by the defence to the private firm for pittance. "It is a fraud of Congress, by Congress (and) for Congress," the minister told reporters as she read out paragraphs from the Supreme Court's January 17 decision allowing winding up of Devas Multimedia because of the fraud.
Devas says it has proceeded with the project after consents and approvals were obtained.
Court questioned the probe agency on delay in filing the chargesheet.
The controversial Antrix-Devas deal will now come under the scrutiny of a Parliamentary panel. Parliament's Committee on Estimates has decided to examine the allocation of S-band spectrum by Indian Space Research Organisation (ISRO) with special reference to the Antrix-Devas deal, an official said.
The president and CEO of Devas, Ramachandran Viswan-athan said, "It is puzzling to hear about such a decision, especially as we have not been intimated. We have not received any communication from any quarter, government, Space Commission or Isro."
The International Chamber of Commerce's arbitration body International Court of Arbitration has ruled in our favour in the Antrix-Devas arbitration case and Antrix is liable to pay damages totalling $672 million to it, Devas said on Tuesday.
The inquiry into Devas Multimedia's deal with Antrix, the commercial wing of Indian Space Research Organisation (ISRO), has found that when the Indian arm of the company was founded in 2004, it had just two shareholders and a paid-up capital of Rs 100,000.
The decision to annul the deal was taken at a meeting of the Cabinet Committee on Security chaired by Prime Minister Manmohan Singh on the basis of a recommendation from the Space Commission.
An international tribunal has ruled that the Indian government had acted "unfairly" and "inequitably" in annulling a contract between Devas and ISRO's commercial arm Antrix.
A US court has asked Antrix Corporation, the commercial arm of Indian Space Research Organisation, to pay a compensation of USD 1.2 billion to a Bengaluru-based startup, Devas Multimedia, for cancelling a satellite deal in 2005.
The UPA government looks set to give the contract a decent burial and, in turn, redeem ISRO and itself.
Besides Nair, others named in the charge sheet include the then K R Sridhar Murthy, Ramachandra Vishwanathan and M G Chandrasekhar.
India will appeal against the verdict of the Hague tribunal in Antrix-Devas deal case, in which the international court had declared the annulling of the contract as "unfair" and "inequitable" and asked it to pay huge amount as compensation.
There has been no loss of revenue arising out of the Antrix-Devas deal as the agreement has been annulled, the Lok Sabha was informed on Wednesday.
'Devas will continue to pursue its rights and enforcement actions against India in courts around the world.'
In his letter dated July 6, 2010, Thomas had also advocated a discussion on use of the scarce S-band spectrum with Indian Space Research Organisation in a special meeting attended by representatives of DoT, Department of Space, Information and Broadcasting Ministry, and Indian Meteorological Department.
The Indian State's arbitrariness may have come to be accepted with resignation within the country, but when it behaves in the same manner with external players, it gets a push-back, observes T N Ninan.
Nair blamed the then United Progressive Alliance government for the "hasty" decision to cancel the agreement with Devas
As the crucial Budget session of Parliament begins, the UPA has a major chance to correct course. If it wastes it, it risks disaster, says Praful Bidwai.
The Indian Space Research Organisation has refused to disclose the contents of letters written by its former chief G Madhavan Nair and others in connection with findings by a committee that went into controversial Antrix-Devas deal, saying they were "personal" that may impede process of investigation or apprehension of offenders.
This is the first meeting of the commission since the July 2, 2010 meet, which decided to terminate the Devas-Antrix deal. The meeting will take a call on the action taken report of the last meeting.
A panel of the Indian Space Research Organisation on Sunday indicted former ISRO chairman Madhavan Nair and three other scientists for acts of commission in the $ 300 million spectrum deal between commercial arm of the ISRO, Antrix and Devas Multimedia Ltd. In an interview with Rediff.com's Vicky Nanjappa, Nair slammed the panel report and claimed that his name will soon be cleared.
"The CAG's office and Department of Space have already issued statements stating the factual position on the matter. It is further clarified that no decision has been taken by the government to allocate space segment using S-Band spectrum to ANTRIX or Devas. Hence, the question of revenue loss does not arise and any such reports are without basis in fact," the PMO statement said.
Both B K Chaturvedi and Rodham Narasimha, who have been named on the panel, participated in the approval process for the ISRO-Devas deal.
'I will say all this happened because of ignorance coupled with arrogance,' says G Madhavan Nair.
A court in Canada has ordered the seizure of amounts collected by the International Air Transport Association (IATA) on behalf of Air India and the Airports Authority of India (AAI). Separate orders were passed on November 24 and December 21 on pleas by shareholders of Devas Multimedia Private Limited who have filed multiple petitions to enforce arbitration awards against the Indian government. According to a Devas spokesperson, more than $30 million has been seized to date under the IATA action.
The Tatas have the know-how to quickly close deals which can otherwise get caught in legal wrangle. In 2018, on the day the National Company Law Tribunal declared Tata Steel as the winner of the bid for bankrupt Bhushan Steel, Bhushan promoter Neeraj Singhal was planning to file for a stay order. He did get the case listed for the following day, but the judge did not admit it, deferring it until the following week. The Tatas used the narrow window of 48 hours to close the deal and take control of the company.
With the launch of GSLV-MK III, slated for April, it will be able to cater to bigger satellites as well.
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