The Hague, July 26: The International Tribunal here on Tuesday (July 26) asked India to pay Devas Multimedia in a case related to unilateral cancellation of an agreement of satellite leasing.
As a result of this setback, India might have to pay a whopping 1 billion dollars in damages.
The case was filed by Devas Multimedia which has signed a contract with Antrix, the commercial arm of the Indian Space Reserach Organisation (Isro). Devas, based in Bengaluru, had signed the deal for S-band transponders in G-SAT6 and G-SAT6A satellites for digital broadcasting of audio service.
In December 2009, The Isro constituted the BN Suresh Committee to review the agreement and the committee submitted its report in June 2010. In July 2010, the space commission recommended scrapping of the deal and in 2011, the then UPA government at the Centre set up two more panels---one each under BK Chaturvedi and Pratyush Sinha---to look into the deal after reports of possible revenue losses surfaced.
The Chaturvedi panel submitted the report in September 2011. In February 2012, the Delhi High Court told the government not to take 'coercive steps' against Devas.
The arbitration began in June 2013 and Devas claimed $1.6 billion in damages. In September last year, the arbitration panel asked Isro to pay Devas Rs 4,400 crore.