New Delhi, January 18

Armed with the Supreme Court ruling in the DEVAS case, the Government is considering invoking provisions under the Companies Act that imply seizing personal assets of individuals associated with Devas and those involved in the decision to seal the deal between the commercial arm of ISRO and DEVAS.

A day after the SC upheld a National Company Law Tribunal decision to wind up DEVAS (Digitally Enhanced Video and Audio Services), Finance Minister Nirmala Sitharaman launched a blistering attack on the Congress for handing over airwaves used by the Defence Ministry to a private firm. “After nearly 10-11 years of struggle, the Supreme Court has come out with the decision on the case. This indicates how the Congress party has misused its position when in power,” the Finance Minister said.

She said Antrix entered into an agreement with Devas for providing multimedia services to mobile users, for which it was given S-band satellite spectrum without the knowledge of the Union Cabinet. She said that the Congress took six years to cancel the deal and the then government did not initiate steps to fight the arbitration proceedings the private company brought against the cancellation, she added.

“It is a fraud of Congress, by Congress (and) for Congress,” the Minister said as she read out paragraphs from the Supreme Court’s January 17 decision.

Devas had initiated arbitration against the annulment at the International Chambers of Commerce (ICC). Sitharaman said the commercial terminal award was for a total of $1 billion, while $93.3 million plus cost and interest was awarded against India under the arbitration brought under the India-Germany BIT. Besides, $111.2 million plus cost and interest was awarded in the arbitration under India-Mauritius BIT.

Its shareholders are pursuing Indian assets abroad to recover awards and have got a French court order for freezing Indian properties in Paris and got partial rights over funds maintained by Air India in Canada. The Court has given a comprehensive verdict upholding the liquidation of Devas ordered by the insolvency court, she said, adding this would be cited in the international courts to challenge enforcement actions of the private firm. “No country which respects the rule of law will ignore these facts,” she said.

Winding Up Process

Government officials said the winding up process for DEVAS, which will entail seizure of assets including fixed deposits etc, has already begun with an authorisation given on Tuesday i.e. January 18 and a liquidator already in place. “Legal opinion for using Section 339 of Companies Act will be sought. This provision prescribes for seizure of personal assets of people engaged in decision making,” said an official, while explaining that seizure can be made of personal assets located here or abroad.

Section 339 of the Companies Act 2013 deals with Liability for Fraudulent Conduct of Business. It says: “If in the course of the winding up of a company, it appears that any business of the company has been carried on with intent to defraud creditors of the company or any other persons or for any fraudulent purpose, the Tribunal, on the application of the Official Liquidator, or the Company Liquidator or any creditor or contributory of the company, may, if it thinks it proper so to do, declare that any person, who is or has been a director, manager, or officer of the company or any persons who were knowingly parties to the carrying on of the business in the manner aforesaid shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the Tribunal may direct.”

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