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In another blow to ISRO’s commercial arm Antrix Corp, a Permanent Court of Arbitration (PCA) Tribunal at The Hague has ruled against the government’s decision to scrap the satellite deal with Devas Multimedia Private Ltd.
Last year, an International Chamber of Commerce Tribunal had also ruled in Devas’ favour and awarded damages and pre-award interest of approximately $672 million, in addition to a post-award annual interest, accruing at 18 per cent until the award is paid in full.
However, these rulings cannot be enforced unless an Indian court validates them. Devas has already filed an application with the Delhi High Court to enforce the arbitration award.
“We prefer a mutually agreeable resolution of this matter. But until then, Devas and its investors will continue to press their claims before international tribunals and in courts around the world,” said Devas Chairman Lawrence Babbio.
Devas had challenged Antrix’s decision to cancel a 2005 contract for building two satellites for Devas, citing alleged irregularities in the deal. The decision was backed by the then UPA government. One of the concerns was that Devas was getting access to spectrum in the 2500 MHz band at a price much lower than what the Centre was able to garner during the 2010 auction.
A BusinessLine exposé It was not until July 2, 2010 — weeks after BusinessLine revealed the nature of the deal — that the Space Commission was briefed on the agreement.
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