 "International tribunal ruling on Devas deal shocking: Antrix Corp")
Describing as "shocking" an international tribunal ruling asking it to pay damages worth $672 million (Rs 4,432 crore) to Devas Multimedia for scrapping a deal four years ago, ISRO's commercial arm - Antrix Corporation today said it was preparing to file in court its application for "remedy".
"The ICC award against Antrix in the Devas case is shocking. Antrix, with the support of Department of Space, is preparing to file in court its application for remedy," Antrix Corporation said in a brief statement here.
Paris-based International Chamber of Commerce (ICC)'s arbitration body International Court of Arbitration in its ruling had asked Antrix to pay damages worth $672 million to city-based Devas Multimedia for "unlawfully" terminating the deal, citing national security.
According to Devas, the Tribunal, in a unanimous decision, has awarded damages and pre-award interest totalling $672 million to it with post-award interest accruing at 18 per cent per annum on that sum until the award is fully paid.
In its findings, the tribunal had noted that Antrix had no legal justification for terminating the agreement and that Dr K R Radhakrishnan, who at the time of annulment, was Secretary, Department of Space and Chairman of ISRO, Antrix and the Space Commission, could have prevented the Cabinet Committee on Security (CCS) from approving the annulment.
The CCS had annulled the deal on the ground that it was not in the security interests of the country.
The UPA government's action had come months after the Comptroller and Auditor General of India came out with a report on 2G scam that had estimated a "presumptive loss" of Rs 1.76 lakh crore due to flawed spectrum allocation process.
Under the deal signed in 2005, Antrix was to provide 70 MHz of the scarce S-Band wavelength to Devas for its digital multimedia services by leasing 90 per cent of the transponders in ISRO's GSAT-6 and GSAT-6A satellites. Devas, in turn, was to pay Antrix a total of USD 300 million over 12 years.
The award will come up for hearing in the Delhi High Court, which has to enforce it.
