Devas- ISRO’s Antrix Corporation Deal

Why in News?

Recently, Hague district court in the Netherlands has denied India's request to cancel a USD 111 million compensation award to foreign investors in Devas Multimedia.

• The UNCITRAL tribunal awarded a payment due to the cancellation of a 2005 satellite deal with India's ISRO's Antrix Corporation and Devas Multimedia in 2011.

The Case of the Devas-Antrix Deal

1. The 2005 Devas-ISRO Satellite Deal:

• In 2005, Antrix Corporation, the commercial arm of ISRO, entered a satellite deal with Bengaluru start-up Devas Multimedia.
• The agreement involved leasing the S-band on ISRO satellites GSAT-6 and GSAT-6A for 12 years to offer digital multimedia services.

2. Cancellation of the Satellite Deal:

• In 2011, the Indian government abruptly canceled the deal due to national security concerns.
• The decision was made amid the 2G scam and allegations that the Devas deal involved a deal for nearly Rs 2 lakh crore in communication spectrum.

3. Legal Battles and Compensation Awards:

• Foreign investors in Devas Multimedia are seeking compensation through international tribunals.
• In 2015, Devas Multimedia was awarded USD 1.2 billion in compensation by the International Chamber of Commerce (ICC) arbitration tribunal.
• Deutsche Telekom has been awarded USD 101 million by the Permanent Court of Arbitration in Geneva.
• In 2020, UNCITRAL granted USD 111 million to three Mauritius-based investors.
• Devas appealed to the US and EU to liquidate assets of Indian Public Sector Undertakings for penalty recovery due to the Indian Government's non-payment of compensation.

4. Indian Government's Challenge:

• The Indian government challenged compensation awards in 2022, citing a Supreme Court order that upheld Devas Multimedia's liquidation on fraud charges.
• The Enforcement Directorate and the Central Bureau of Investigation are currently investigating cases of money laundering and corruption against Devas and its officials in India.

5. Hague District Court's Rejection:

• The Hague district court dismissed India's request to revoke the compensation awards.
• The court ruled that charges of deceit, fraud, and corruption had already been addressed and dismissed in previous legal proceedings.
• Supreme Court of India's judgment was deemed to have no independent significance.

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