The Permanent Court of Arbitration (PCA) tribunal ruled that compensation was payable by India for annulling the Devas-Antrix pact. Last year, Antrix was fined Rs 4,400 crore by the International Chamber of Commerce (ICC) tribunal for unilaterally ending its contract with Devas.
India received a second blow in the Antrix-Devas case on Tuesday as it lost an arbitration case between Indian Space Research Organisation (ISRO) and Bangalore-based Devas Multimedia Pvt Ltd in The Hague tribunal and may have to cough up $1 billion in damages.
The Permanent Court of Arbitration (PCA) tribunal ruled that compensation was payable by India for annulling the Devas-Antrix pact. Last year, Antrix was fined Rs 4,400 crore by the International Chamber of Commerce (ICC) tribunal for unilaterally ending its contract with Devas.
What was the case?
A $300-million contract was signed in 2005 between the marketing arm of ISRO, Antrix Corporation, and Devas for 70 MHz spectrum in S band, which is said to be rare and used only for national and strategic purposes. The airwave allocation was to be made from the 150 MHz of spectrum with ISRO. The deal also involved a 12-year lease of 90% transponder space on two satellites. Devas moved the tribunal after ISRO terminated the deal, accusing Devas of irregularities.
What's Devas' claim?
Devas said it preferred a "mutually agreeable resolution", but in the absence of that it would keep seeking intervention from international courts and tribunals. "Now, two international tribunals have agreed on our damages claim. PCA tribunal observed that India has breached its treaty commitment to accord fair treatment to Devas' foreign investors," said Lawrence Babbio, chairman of Devas.
What was the ICC ruling?
According to Devas, the ICC tribunal in 2015 had termed India's termination of the Antrix-Devas deal as unlawful. The tribunal awarded Devas damages and pre-award interest of approximately $672 million, plus post-award annual interest accruing at 18% until it was paid in full. Devas said courts in the United Kingdom and France had recognised the ICC award and held it "enforceable".
What was Devas' plans?
The hybrid satellite-terrestrial infrastructure project that Devas was planning would have given it a first-mover advantage in satellite-based mobile services, which do not require cell sites or towers. Satellite telephones – which can give better coverage than terrestrial services – are expensive and used for strategic and military purposes.
Why was the deal aborted?
The Antrix-Devas agreement was terminated by the Manmohan Singh government on February 17, 2011. This was after an audit by a one-man committee of the ISRO, in 2010, bringing to light irregularities in the deal in terms of financial mismanagement, conflict of interest, non-compliance of rules, and favouritism.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Madhavan")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}