The Cabinet Committee on Security (CCS) on Thursday said that it has annulled the Antrix-Devas deal on grounds that S-band spectrum was required for more strategic needs.
The S-band will not be allocated to Antrix for any other commercial service.
The Law Minister, Mr Veerappa Moily, said after the CCS meeting: “There has been an increased demand for allocation of spectrum for national needs, including for the needs of defence, para-military forces, railways and other public utility services as well as for societal needs… the Government will not be able to provide orbit slot in S band to Antrix for commercial activities.”
“The agreement for the lease of space segment capacity on ISRO/Antrix S-Band spacecraft by Devas Multimedia Pvt Ltd entered on 28th January, 2005, shall be annulled forthwith,” the Law Minister added.
The Bangalore-based company said that it is awaiting a formal communication from the Government on the status of the contract. “Once we get this information, we will be in a position to comment,” Devas said in a statement.
Asked if the Government was prepared for a possible legal action by Devas, Mr Moily said, “The Government has taken all possible litigations under consideration before taking the decision. We are very confident that this is the matter which, even if they go to the court, they will not succeed and we will be in a position to face any legal challenges.”
The CCS decision comes within days of a Business Line investigative report that had revealed the nature of the agreement between Antrix and Devas.