India, January 19, 2022: “The Supreme Court’s order on the 2005 Antrix-Devas deal is proof of the Congress’s misuse of power,” Finance Minister Nirmala Sitharaman said yesterday.
A satellite deal between the Devas Multimedia Pvt Ltd, a Bangalore-based startup, and Antrix Corporation, the commercial arm of Indian space research organization (ISRO) is at the center of the global league clash between the Indian government and the foreign investors in Devas.
As the deal was initially signed in 2005, it was canceled in 2011 by the then UPA government, citing non-compliance with the satellite spectrum requirements, allotted to Devas.
On Monday, the Supreme court upheld the order given by the National Company Law Tribunal (NCLT) on May 25, 2021. As per the order, Devas has to be liquidated to the ground as the company was created under fraudulent circumstances.
However, Devas and its foreign investors approached various international tribunals and received some compensation too. As per the CBI report submitted in 2005, 8 officials from Devas, ISRO, and Antrix linked to the deal were found guilty.
Among the eight is former ISRO chairman G Madhavan Nair and former Antrix executive director K R Sridharamurthi.
Why liquidation?
The liquidation of Devas was ordered due to the plea submitted by Antrix in the NCLT in January 2021. On May 25, the NCLT ordered the liquidation, which was upheld by the National Company Law Appellate Tribunal on September 8, 2021, and by the Supreme Court on Monday.
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