Air India gets a big relief from Canada Court, Devas Multimedia gets permission to seize only 50 percent of the funds

Air India has got a big relief from the Canadian court in the Devas Multimedia and Antrix Corporation dispute. Shareholders of Dewas can keep only 50 per cent of Air India funds held with IATA forfeit.

Giving relief to AAI, ordered the release of its confiscated funds from the shareholders of Dewas Multimedia.

Devas Multimedia and Antrix dispute: The Airport Authority of India (AAI) has received relief news from a Canadian court. A Canadian court has said that the shareholders of Dewas Multimedia can seize only 50 per cent of Air India’s funds, which were kept with the global airlines body IATA (International Air Transport Association). Also, while giving relief to the Airport Authority of India (AAI), the court ordered the release of its confiscated funds from the shareholders of Dewas Multimedia.

Earlier this month, the court had ordered forfeiture of Air India and Airports Authority of India (AAI) funds, which were kept with the International Air Transportation Association (IATA). The court gave this decision while hearing a petition filed by the shareholders of Dewas Multimedia, seeking enforcement of the arbitration order with regard to the cancellation of the Antrix deal.

Forfeiture amount should be limited to 50 percent

The Court of Canada’s January 8, 2021 order said, “The Court finds that it is in the interest of justice to limit the forfeiture amount of Air India to 50 per cent of Air India’s funds currently held by IATA, until further orders.” Responding to the latest court order on Saturday, Dewas shareholders said they can forfeit Air India’s funds (up to 50 per cent) held in IATA. “It is a huge victory for Dewas,” he said.

What was the decision of the Quebec Superior Court?

Earlier, the Quebec Superior Court, in two separate orders on November 24 and December 21, had held that the shareholders of Dewas Multimedia can freeze the assets of Airport Authority of India and Air India, which are held by IATA. This order was given regarding the cancellation of the deal with ISRO’s subsidiary Antrix in the year 2011.

US court ordered $1.2 billion payment

On 27 October 2020, a US court asked Antrix Corporation to pay $1.2 billion in damages to Bengaluru-based startup Devas Multimedia in the 2011 satellite deal cancellation case. Talking about the fund caesar, on January 3, 2022, IATA told the Canadian Court that it has a fund of $ 17.3 million of Air India and $ 12.76 million of AAI.

How to do business with IATA?

IATA helps the Airport Authority of India (AAI) to collect various types of charges including navigation charges from foreign airlines. Similarly, when Air India tickets are purchased abroad, the funds are deposited with IATA. This fund will be credited with IATA only if this ticket is booked with the help of global distribution systems like Amadeus and Travelport.

This deal was done in 2005

Talking about the Dewas and Antrix deal, a deal was signed between the two companies in January 2005, according to which Antrix would manufacture two satellites, launch them and then make 70 MHz of spectrum available to Dewas Multimedia. It was planned to be used to provide hybrid satellite and terrestrial communication services across India.

The deal was canceled in 2011

In 2011, Antrix decided to cancel the deal with Devas. In 2011, Dewas complained about this on international platforms. In 2015, the Arbitration Tribunal asked ISRO to pay $672 million to Devas Multimedia. After that, on 27 October 2020, a US court ordered Antrix Devas to pay $ 562.5 million in damages. With interest, this amount becomes 1.2 billion.

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