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The Comptroller and Auditor General's scathing report on the Department of Space's Antrix-Devas deal reveals official nexus, stealth and serious violation of procedures.
Antrix Corporation's 2005 deal, blessed by the then DoS brass, “almost gifted away” precious S-band to the private operator, the report tabled in Parliament on Tuesday says.
The Government cancelled the agreement 20 days after an expose by Business Line and The Hindu on February 7, 2011. The CAG report says the then Chairman and Secretary of DoS, Mr G. Madhavan Nair, and other technocrats acted against ISRO's and national interest.
The report corroborates much of the findings of the two high-level inquiry committees set up by the Centre in 2011The national auditor said, “DoS virtually gifted a valuable and potentially high profit-earning band to Devas”.
The deal involved building and launching two satellites, GSAT-6 and 6A, for Devas. CAG said ISRO officials hid critical details of the agreement. They downplayed the cost to ISRO. Instead, they connived to benefit a private company floated by their former cronies, according to the report.
“The report on the hybrid satellite digital multimedia broadcasting service agreement with Devas is a classic case of public investment for private profit. The Department of Spacewent beyond its remit, concealed facts from the Union Cabinet and violated numerous rules, policies and procedures. Public interest and those of the Government were sacrificed to favour a private consultancy firm promoted by D. Venugopal and M.G. Chandrashekhar, retired employees of ISRO.”
In late 2010-early 2011, CAG initially put the potential loss from the deal at Rs 2.37-lakh crore. The final report says, “A Statement of Facts was issued to DoS in November 2010 and their reply was received in March 2011. The revised draft report was issued to DoS in July 2011” DoS put the cost at Rs 1,254.52 crore but would have received Rs 1,120.76 crore. The agreement could not have recovered the total cost incurred by DoS.
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