The international Tribunal in the Hague has ruled against the Indian government in a case filed by Devas Multimedia in 2005, after the Indian Space Research Organisation’s (ISRO) Antrix cancelled a major contract.
The Indian government may have to pay nearly about $1 billion in damages to Devas Multimedia.
ISRO’s commercial arm antrix had cancelled a deal involving the use of two satellites and a spectrum. Following this case was filed by Devas Multimedia against Antrix.
The “Permanent court of Arbitrations” (PCA) tribunal also found that India breached its treaty commitments to accord fair and equitable treatment to Devas’s foreign investors.
The PCA regularly administers cases involving states, including investment treaty claims brought under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL). The ruling, issued yesterday at The Hague, was the second by an international tribunal arising out of the cancellation of the Devas, a statement by Devas said on Tuesday 26 July 2016.
An International Chamber of Commerce (ICC) tribunal in 2015 that Antrix’s repudiation of the Devas Antrix contract was unlawful, and awarded Devas damages and pre-award interest of approximately $672 million, plus post award annual interest accruing at 18 percent until the award is paid in full.
Antrix and Devas had signed the deal which would have helped Devas to deliver internet and broadband to remote areas.
The deal was annulled by the UPA government as it was not informed it and also ,no auction process was followed.
Following this the U.S. investors in Devas moved a case against Antrix.