The Enforcement Directorate (ED) on Monday slapped a ₹1,200 crore Foreign Exchange Management Act (FEMA) violation notice in connection with the alleged “wrongful” gain made by private multi-media company Devas after inking a deal with Antrix, the commercial arm of ISRO, in 2005.

An order issued by the agency’s Special Director in Chennai found Devas Multimedia Private Limited, Antrix and others “contravening” the FEMA provisions on at least three counts, after completing the over-three-year investigation into the deal. The agency had registered a FEMA case in 2012 and is also probing the deal under anti-money laundering laws.

The show-cause notice said the ED had probed the foreign direct investment received by Devas Multimedia Private Ltd, Bengaluru, from overseas investors, including CC Devas Mauritius Ltd, Telecom Devas Mauritius Ltd, Deutsche Telkom Asia Private Ltd, Devas Employees Mauritius Private Ltd and the Indian firm (Antrix), between May 2006 and June 2010. Devas Multimedia had received a total of $131.44 million (about ₹578.54 crore).

As per the order, the total violation under FEMA that has been established in the case is ₹1,217.76 crore. If the charges stand after completion of the adjudication process that will begin now, the accused will be liable to pay a penalty that could be three times the size of the amount contravened.

Troubled deal Antrix had signed a deal with Devas to provide it with crucial S-Band wavelength, which is primarily kept for the strategic interests of the country.

Following complaints of irregularities, the UPA government scrapped it in 2010.

The deal saw the early exit of G Madhavan Nair as ISRO Chairman as he was the head of the Governing Council of Antrix when it was finalised.

Related Topics
comment COMMENT NOW