A Canadian court has allowed the shareholders of Devas Multimedia to forfeit 50 per cent of Air India’s funds, which were held with global airlines body IATA.
Air India said that now the government has no right on this.
Devas-Antrix controversy ,Devas-Antrix disputeAir India has got a big relief. Air India ,Air India) has been cleared by the Quebec Court of Appeals to challenge a Canada Court decision that allowed foreign investors of Bengaluru-based Dewas Multimedia to confiscate Air India assets. The dispute dates back to 2005 in which a deal was struck between ISRO’s commercial arm Antrix Corporation and Dewas Multimedia, which was later canceled. In 2005, Devas was allowed to confiscate the funds to seek compensation for the cancellation of the satellite deal with Antrix Corporation. Judge Christine Bauduin, in a February 11 judgment, agreed with Air India’s appeal that the court should re-examine the claims of three Mauritius-based investors and Germany’s Deutsche Telekom that the airline belongs to the Indian government and therefore recoveries should be made. Needed.
“Without expressing opinion on the merits or likelihood of success of the appeal, I am satisfied that the matter should be brought up in the court,” the judge said in a brief order. He posted the matter for hearing on May 13. The date has been set. Air India has appealed to foreign investors to reject Dewas’ demand, saying it is no longer a state-owned company after its acquisition by the Tata group on January 27, 2022.
The deal was canceled in 2011.
During the United Progressive Alliance (UPA) government, an agreement was signed in 2005 between Antrix and Dewas, the commercial arm of the Indian Space Research Organization (ISRO), on spectrum utilization. The deal was canceled in 2011 on the grounds that the broadband spectrum auction was fraudulent and that the government needed S-band satellite spectrum for national security and other social purposes.
The Government of India had to face losses in all three cases.
Thereafter, Dewas Multimedia initiated arbitration proceedings against the decision in the International Chambers of Commerce (ICC). Apart from this, two other arbitration proceedings were also initiated by the investors of Dewas. India lost in all three cases and was asked to pay a total of $1.29 billion to make up for the loss.
Permission to confiscate 50% of funds deposited with IATA
A Canadian court has allowed the shareholders of Devas Multimedia to forfeit 50 per cent of Air India’s funds, which were held with global airlines body IATA. Apart from this, a French court has also allowed Dewas to confiscate Indian properties in Paris.