Welcoming the Supreme Court judgment upholding the winding-up process of Devas Multimedia, Union Finance Minister Nirmala Sitharaman vowed that India will fight out the case in various international forums till justice is done.
"We shall definitely take this order and defend the Government of India's position. That position where this order was cancelled even by the United Progressive Alliance (UPA) government six years after the order was signed and make sure justice is done against this fraud, which was perpetrated," the finance minister remarked during a press conference here on Tuesday.
Terming the deal between Devas Multimedia and Antrix Corp a dishonest transaction, the minister said, "Devas offered a bouquet of services known as 'Devas Services' through a device called 'Devas Device' in a hybrid mode of transmission, which is a combination of satellite and terrestrial transmission, and which is called 'Devas Technology'. But none of which existed when they signed the agreement, nor existed when the agreements were cancelled and probably, don't exist even today!"
The minister also denounced the UPA dispensation for its failure to ensure the appointment of an arbitrator to defend the government position despite repeated reminders after Devas Shareholders approached the International Chamber of Commerce (ICC) to challenge the deal's cancellation.
Liquidation process to commence shortly
On Monday the Supreme Court had dismissed an appeal by Devas Multimedia and parent Devas Employees Mauritius against the liquidation of the company. Upholding the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) orders, the apex court had observed that the company was formed for a "fraudulent and unlawful purpose".
Also Read: Sitharaman says UPA committed fraud against country through Devas-Antrix pact
"The winding-up will commence shortly with the liquidator having already been appointed. The process will be carried out under the due process of law," informed Rajesh Verma, Secretary, Ministry of Corporate Affairs, at the finance minister's press conference.
In 2005, the Indian Space Research Organisation (ISRO) and Devas had inked a satellite deal, which was annulled by the government in 2011, citing security concerns. This led Devas shareholders to commence international arbitration proceedings.
Earlier in January, a Quebec court passed an interim order allowing Devas Multimedia's shareholders to seize cash that airport regulator Airports Authority of India (AAI) and national carrier Air India hold with the International Air Transport Association (IATA). Following an appeal, AAI got relief from the order, but the status quo continues on Air India funds.
In a 2012 report, the Comptroller and Auditor General (CAG) had panned the deal for violating provisions of the Satellite Communication Policy.
Since 2015, the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have been investigating the case over corruption and money laundering charges.
Claims amounting to more than $1.2 billion have been made against Antrix Corp by Devas Multimedia shareholders under various bilateral investment (BIT) treaties and a commercial termination award. In an interview with BTTV, Devas's lawyer Matthew D McGill had indicated they were open to negotiating a settlement with the Indian government.
Also Read: Devas shareholders can seize 50% of Air India funds held by IATA: Quebec court