Devas moves UK, France courts over Antrix dues

The commercial arm of Isro earns bulk of its foreign revenue from England, France

Satellite firm Devas Multimedia has informed Antrix Corp, the commercial arm of the state-owned Indian Space Research Organisation (Isro), it has sought approval from the courts in England and France to pursue action locally to recover $672 million award it won from the International Commercial Court.
 

In September, Devas won the international tribunal award against Antrix, over an order cancellation to lease two satellites to the country. In 2012, India had cancelled the satellite order, citing national security issues after the deal was caught in a political maelstrom that emerged after the 2G scam. The $300 million satellite leasing deal, signed in 2005, had mandated Devas to offer two satellites that operate on the so-called S-band to transmit high-speed internet on mobile devices. India took a view it should be restricted to strategic purposes, not for commercial reasons.
 

 

Antrix does not have any local assets but is a supplier of satellite images and offers components and satellite launch services to customers in England and France. The courts can direct local customers of Antrix to deposit money outstanding to the Indian space agency with the court, said a lawyer for Devas.

Also Read: Devas says vendetta by India over CBI case against top officials
 

The award by the International Court of Arbitration is Rs 4,360 crore, more than double Antrix’s revenues of Rs 1,850 crore for 2014-15. Antrix earned profits of Rs 896 crore in the past five years.
 

Antrix Corp has already said it would file an “application for remedy” in courts, with support from the Department of Space against the tribunal verdict. Antrix and Isro officials could not be reached for comments. 

Also Read: CBI Files Chargesheet In Antrix-Devas Deal Case; Names Ex-ISRO Chief
 

Last month, Antrix lost a case in the Permanent Case of Arbitration at The Hague, after it found India breached its bilateral treaty commitments with Mauritius to accord fair and equitable treatment to foreign investors of Devas by cancelling the deal. Two US investors in Devas - Columbia Capital and Telcom Ventures - had filed a case against the Indian government, who own the country’s space agency for cancelling the deal.

Also Read: ED Issues Rs 1,200-Crore Notice On Devas Multimedia's 'Wrongful Gain'
 

A third investor Deutsche Telekom, who, in 2008, had invested $75 million for 17 per cent, valuing Devas at $443 million, is seeking another arbitration, citing violation of Indo-German bilateral agreements.

CAUGHT IN A POLITICAL MAELSTROM

• In September, Devas won the international tribunal award against Antrix, over an order cancellation to lease two satellites to the country
• In 2012, India had cancelled the satellite order, citing national security issues after the deal was caught in a political maelstrom that emerged after the 2G scam
• The $300 million satellite leasing deal, signed in 2005, had mandated Devas to offer two satellites that operate on the S-band to transmit high-speed internet on mobile devices
• India took a view it should be restricted to strategic purposes, not for commercial reasons