Finance and Corporate Affairs Minister Nirmala Sitharaman on Tuesday blamed the Congress-led UPA government for committing a "fraud" on the people of India and country through the 2005 agreement signed between Devas Multimedia and Antrix, the commercial arm of the Indian Space Research Organisation (ISRO).
Devas is fighting multiple cases in courts in different countries to enforce a $1.3 billion arbitration award over the cancellation of the agreement with Antrix.
Sitharaman, during a press conference, accused the UPA government of giving away the rare S-band spectrum, primarily used by armed forces, at a "pittance" to a private party.
She also said that the Narendra Modi government will fight the case in all the courts so that Devas does not get away with this fraud.
The finance minister said that the UPA government decided to call off the pact in 2011 because it was a clear case of fraud and even a minister of the government was arrested for it. She said that the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) are also probing the case.
She alleged that even the Union Cabinet didn't know of the pact when it was signed. Under the agreement, 90 per cent of the yet to be launched satellites were given away to private entities, Sitharaman claimed.
Devas had promised to deliver on things on which it didn't even have rights for, the finance minister said.
On Monday, the Supreme Court had upheld winding up of Devas Multimedia, saying "it is a case of fraud of a huge magnitude which cannot be brushed under the carpet, as a private lis".
The court was hearing Devas' appeal against the National Company Law Appellate Tribunal's (NCLAT) order which had upheld an earlier order of the Bengaluru bench of the National Company Law Tribunal (NCLT) directing winding up of Devas Multimedia and appointing a provisional liquidator for the purpose.
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Devas and Antrix had signed the pact in 2005 to provide multimedia services to mobile users using the leased S-band satellite spectrum.
The deal was cancelled in 2011 on the ground that the auction of the broadband spectrum was mired in fraud and that the government needed the S-band satellite spectrum for national security and other social purposes.
Devas Multimedia had initiated arbitration against the annulment at the International Chambers of Commerce (ICC). Two separate arbitrations were also initiated under the Bilateral Investment Treaty (BIT) by Mauritius investors in Devas Multimedia under the India-Mauritius BIT and by Deutsche Telekom -- a German company -- under the India-Germany BIT. India lost all three disputes and has to pay a total of $1.29 billion in damages.
Last week, a French court ordered freezing of an Indian government property in Paris on a plea by Devas shareholders.
Besides, a court in Quebec, Canada earlier this month said that Devas shareholders can seize up to 50 per cent of Air India's funds held by the International Air Transport Association (IATA) retrospectively and prospectively.
Sithataman said that the arbitration tribunals have awarded $1.2 billion plus cost and interest on pleas by Devas shareholders against cancellation of Antrix deal.
The Modi government, she said, is fighting in all courts to save taxpayers' money that otherwise would be going for payment of awards of such a fraud deal.
(With agency inputs)
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