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LATEST NEWS UPDATES | Devas moves international court to get back Antrix deal by Surojit Gupta </title>
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Devas Multimedia has approached the International Court of Arbitration (ICA) seeking restoration of its contract with Indian Space Research Organisation's (ISRO) commercial arm Antrix which was terminated in February after allegations of wrongdoing emerged over the allocation of S-band spectrum.
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Devas Multimedia has approached the International Court of Arbitration (ICA) seeking restoration of its contract with Indian Space Research Organisation's (ISRO) commercial arm Antrix which was terminated in February after allegations of wrongdoing emerged over the allocation of S-band spectrum.
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<h1 class="cat-box-title">Devas moves international court to get back Antrix deal by Surojit Gupta</h1>
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Published on</span><span class="text-date"> Jul 10, 2011</span>
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<br /><div align="justify">Devas Multimedia has approached the International Court of Arbitration (ICA) seeking restoration of its contract with Indian Space Research Organisation's (ISRO) commercial arm Antrix which was terminated in February after allegations of wrongdoing emerged over the allocation of S-band spectrum.<br /><br />In February, the UPA government scrapped the controversial contract between Antrix Corporation and Bangalore-based Devas Multimedia for the lease of space segment in S-band. The government had said that it could not grant S-band spectrum to anyone including Antrix due to strategic reasons. The controversy emerged at a time when the government was battling a slew of corruption scandals including the Commonwealth Games and 2G spectrum scam.<br /><br />Devas has not sought any specific monetary damages but has asked the tribunal that it should be compensated for breach of agreement. It has sought that Antrix's termination of the contract should be termed improper and invalid and has asked for a declaration that the agreement with Antrix remains "fully extant and binding".<br /><br />It has also urged the tribunal under the International Chamber of Commerce (ICC) to direct Antrix, the Department of Space and ISRO to deliver the satellite capacity to Devas by October 15, 2012 and to fulfill all its obligations under the agreement signed on January 28, 2005 to enable the firm to start operations of its services. The arbitration demand was filed on June 29 at the ICC in Paris.<br /><br />The arbitration is valid for 30 days and can be extended by another 60 days. Sources said Devas will plan its future course of action if Antrix fails to respond within the stipulated period. They said the company was forced to resort to arbitration as repeated attempts to discuss the issue with Antrix, ISRO and the Department of Space failed.<br /><br />The deal between Devas and Antrix relates to the leasing of capacity in the S-band on GSAT 6 and 6A satellites to be launched by ISRO and DoS. Under the terms of the agreement, Devas was to use the leased capacity for 12 years to offer multimedia services through its specialized systems to mobile terminals across India. Antrix was entitled to $340 million from Devas while the cost incurred by the government was likely to be around $170 million.<br /><br />Several foreign investors such as Deutsche Telekom and private equity player Columbia Capital invested in the project. Deutsche Telekom holds 20% in Devas Multimedia which was set up in 2004.<br /><br />In February 2006, Antrix informed Devas that it had received the necessary approvals for building, launching and leasing capacity of S-band satellites. After this confirmation, Devas moved the Foreign Investment Promotion Board (FIPB) for approvals for its foreign investments totaling $225 million. But Devas has maintained that Antrix failed to deliver the satellite on time by December 2008 and continued to drag its feet on the issue. In December 2009, ISRO and DoS had assured that the satellites would be completed and launched by July 2010.<br /><br />But after the controversy over allocation of S-band spectrum surfaced, the government was forced to cancel the contract between Antrix and Devas and an inquiry was ordered. On February 25, 2011, Antrix wrote to Devas informing that the contract had been terminated. It said Antrix was unable to provide the orbital slot in S-band due to policy decisions taken by the Cabinet Committee on Security and the government's policy decision represented a force majeure event of indefinite duration which would make it impossible for Antrix to take any effective step to fulfill the agreement. <br /></div>
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<br><a href="http://timesofindia.indiatimes.com/india/Devas-moves-international-court-to-get-back-Antrix-deal/articleshow/9177606.cms" class="re" target="_blank">The Times of India, 10 July, 2011, http://timesofindia.indiatimes.com/india/Devas-moves-international-court-to-get-back-Antrix-deal/articleshow/9177606.cms</a><div class="clear"></div>
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<h1 class="cat-box-title">Devas moves international court to get back Antrix deal by Surojit Gupta</h1>
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Published on</span><span class="text-date"> Jul 10, 2011</span>
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<br /><div align="justify">Devas Multimedia has approached the International Court of Arbitration (ICA) seeking restoration of its contract with Indian Space Research Organisation's (ISRO) commercial arm Antrix which was terminated in February after allegations of wrongdoing emerged over the allocation of S-band spectrum.<br /><br />In February, the UPA government scrapped the controversial contract between Antrix Corporation and Bangalore-based Devas Multimedia for the lease of space segment in S-band. The government had said that it could not grant S-band spectrum to anyone including Antrix due to strategic reasons. The controversy emerged at a time when the government was battling a slew of corruption scandals including the Commonwealth Games and 2G spectrum scam.<br /><br />Devas has not sought any specific monetary damages but has asked the tribunal that it should be compensated for breach of agreement. It has sought that Antrix's termination of the contract should be termed improper and invalid and has asked for a declaration that the agreement with Antrix remains "fully extant and binding".<br /><br />It has also urged the tribunal under the International Chamber of Commerce (ICC) to direct Antrix, the Department of Space and ISRO to deliver the satellite capacity to Devas by October 15, 2012 and to fulfill all its obligations under the agreement signed on January 28, 2005 to enable the firm to start operations of its services. The arbitration demand was filed on June 29 at the ICC in Paris.<br /><br />The arbitration is valid for 30 days and can be extended by another 60 days. Sources said Devas will plan its future course of action if Antrix fails to respond within the stipulated period. They said the company was forced to resort to arbitration as repeated attempts to discuss the issue with Antrix, ISRO and the Department of Space failed.<br /><br />The deal between Devas and Antrix relates to the leasing of capacity in the S-band on GSAT 6 and 6A satellites to be launched by ISRO and DoS. Under the terms of the agreement, Devas was to use the leased capacity for 12 years to offer multimedia services through its specialized systems to mobile terminals across India. Antrix was entitled to $340 million from Devas while the cost incurred by the government was likely to be around $170 million.<br /><br />Several foreign investors such as Deutsche Telekom and private equity player Columbia Capital invested in the project. Deutsche Telekom holds 20% in Devas Multimedia which was set up in 2004.<br /><br />In February 2006, Antrix informed Devas that it had received the necessary approvals for building, launching and leasing capacity of S-band satellites. After this confirmation, Devas moved the Foreign Investment Promotion Board (FIPB) for approvals for its foreign investments totaling $225 million. But Devas has maintained that Antrix failed to deliver the satellite on time by December 2008 and continued to drag its feet on the issue. In December 2009, ISRO and DoS had assured that the satellites would be completed and launched by July 2010.<br /><br />But after the controversy over allocation of S-band spectrum surfaced, the government was forced to cancel the contract between Antrix and Devas and an inquiry was ordered. On February 25, 2011, Antrix wrote to Devas informing that the contract had been terminated. It said Antrix was unable to provide the orbital slot in S-band due to policy decisions taken by the Cabinet Committee on Security and the government's policy decision represented a force majeure event of indefinite duration which would make it impossible for Antrix to take any effective step to fulfill the agreement. <br /></div>
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<br><a href="http://timesofindia.indiatimes.com/india/Devas-moves-international-court-to-get-back-Antrix-deal/articleshow/9177606.cms" class="re" target="_blank">The Times of India, 10 July, 2011, http://timesofindia.indiatimes.com/india/Devas-moves-international-court-to-get-back-Antrix-deal/articleshow/9177606.cms</a><div class="clear"></div>
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LATEST NEWS UPDATES | Devas moves international court to get back Antrix deal by Surojit Gupta </title>
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<h1 class="cat-box-title">Devas moves international court to get back Antrix deal by Surojit Gupta</h1>
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Published on</span><span class="text-date"> Jul 10, 2011</span>
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<br /><div align="justify">Devas Multimedia has approached the International Court of Arbitration (ICA) seeking restoration of its contract with Indian Space Research Organisation's (ISRO) commercial arm Antrix which was terminated in February after allegations of wrongdoing emerged over the allocation of S-band spectrum.<br /><br />In February, the UPA government scrapped the controversial contract between Antrix Corporation and Bangalore-based Devas Multimedia for the lease of space segment in S-band. The government had said that it could not grant S-band spectrum to anyone including Antrix due to strategic reasons. The controversy emerged at a time when the government was battling a slew of corruption scandals including the Commonwealth Games and 2G spectrum scam.<br /><br />Devas has not sought any specific monetary damages but has asked the tribunal that it should be compensated for breach of agreement. It has sought that Antrix's termination of the contract should be termed improper and invalid and has asked for a declaration that the agreement with Antrix remains "fully extant and binding".<br /><br />It has also urged the tribunal under the International Chamber of Commerce (ICC) to direct Antrix, the Department of Space and ISRO to deliver the satellite capacity to Devas by October 15, 2012 and to fulfill all its obligations under the agreement signed on January 28, 2005 to enable the firm to start operations of its services. The arbitration demand was filed on June 29 at the ICC in Paris.<br /><br />The arbitration is valid for 30 days and can be extended by another 60 days. Sources said Devas will plan its future course of action if Antrix fails to respond within the stipulated period. They said the company was forced to resort to arbitration as repeated attempts to discuss the issue with Antrix, ISRO and the Department of Space failed.<br /><br />The deal between Devas and Antrix relates to the leasing of capacity in the S-band on GSAT 6 and 6A satellites to be launched by ISRO and DoS. Under the terms of the agreement, Devas was to use the leased capacity for 12 years to offer multimedia services through its specialized systems to mobile terminals across India. Antrix was entitled to $340 million from Devas while the cost incurred by the government was likely to be around $170 million.<br /><br />Several foreign investors such as Deutsche Telekom and private equity player Columbia Capital invested in the project. Deutsche Telekom holds 20% in Devas Multimedia which was set up in 2004.<br /><br />In February 2006, Antrix informed Devas that it had received the necessary approvals for building, launching and leasing capacity of S-band satellites. After this confirmation, Devas moved the Foreign Investment Promotion Board (FIPB) for approvals for its foreign investments totaling $225 million. But Devas has maintained that Antrix failed to deliver the satellite on time by December 2008 and continued to drag its feet on the issue. In December 2009, ISRO and DoS had assured that the satellites would be completed and launched by July 2010.<br /><br />But after the controversy over allocation of S-band spectrum surfaced, the government was forced to cancel the contract between Antrix and Devas and an inquiry was ordered. On February 25, 2011, Antrix wrote to Devas informing that the contract had been terminated. It said Antrix was unable to provide the orbital slot in S-band due to policy decisions taken by the Cabinet Committee on Security and the government's policy decision represented a force majeure event of indefinite duration which would make it impossible for Antrix to take any effective step to fulfill the agreement. <br /></div>
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<br><a href="http://timesofindia.indiatimes.com/india/Devas-moves-international-court-to-get-back-Antrix-deal/articleshow/9177606.cms" class="re" target="_blank">The Times of India, 10 July, 2011, http://timesofindia.indiatimes.com/india/Devas-moves-international-court-to-get-back-Antrix-deal/articleshow/9177606.cms</a><div class="clear"></div>
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LATEST NEWS UPDATES | Devas moves international court to get back Antrix deal by Surojit Gupta
Devas moves international court to get back Antrix deal by Surojit Gupta
Published on Jul 10, 2011
Modified on Jul 10, 2011
Devas Multimedia has approached the International Court of Arbitration (ICA) seeking restoration of its contract with Indian Space Research Organisation's (ISRO) commercial arm Antrix which was terminated in February after allegations of wrongdoing emerged over the allocation of S-band spectrum.
In February, the UPA government scrapped the controversial contract between Antrix Corporation and Bangalore-based Devas Multimedia for the lease of space segment in S-band. The government had said that it could not grant S-band spectrum to anyone including Antrix due to strategic reasons. The controversy emerged at a time when the government was battling a slew of corruption scandals including the Commonwealth Games and 2G spectrum scam.
Devas has not sought any specific monetary damages but has asked the tribunal that it should be compensated for breach of agreement. It has sought that Antrix's termination of the contract should be termed improper and invalid and has asked for a declaration that the agreement with Antrix remains "fully extant and binding".
It has also urged the tribunal under the International Chamber of Commerce (ICC) to direct Antrix, the Department of Space and ISRO to deliver the satellite capacity to Devas by October 15, 2012 and to fulfill all its obligations under the agreement signed on January 28, 2005 to enable the firm to start operations of its services. The arbitration demand was filed on June 29 at the ICC in Paris.
The arbitration is valid for 30 days and can be extended by another 60 days. Sources said Devas will plan its future course of action if Antrix fails to respond within the stipulated period. They said the company was forced to resort to arbitration as repeated attempts to discuss the issue with Antrix, ISRO and the Department of Space failed.
The deal between Devas and Antrix relates to the leasing of capacity in the S-band on GSAT 6 and 6A satellites to be launched by ISRO and DoS. Under the terms of the agreement, Devas was to use the leased capacity for 12 years to offer multimedia services through its specialized systems to mobile terminals across India. Antrix was entitled to $340 million from Devas while the cost incurred by the government was likely to be around $170 million.
Several foreign investors such as Deutsche Telekom and private equity player Columbia Capital invested in the project. Deutsche Telekom holds 20% in Devas Multimedia which was set up in 2004.
In February 2006, Antrix informed Devas that it had received the necessary approvals for building, launching and leasing capacity of S-band satellites. After this confirmation, Devas moved the Foreign Investment Promotion Board (FIPB) for approvals for its foreign investments totaling $225 million. But Devas has maintained that Antrix failed to deliver the satellite on time by December 2008 and continued to drag its feet on the issue. In December 2009, ISRO and DoS had assured that the satellites would be completed and launched by July 2010.
But after the controversy over allocation of S-band spectrum surfaced, the government was forced to cancel the contract between Antrix and Devas and an inquiry was ordered. On February 25, 2011, Antrix wrote to Devas informing that the contract had been terminated. It said Antrix was unable to provide the orbital slot in S-band due to policy decisions taken by the Cabinet Committee on Security and the government's policy decision represented a force majeure event of indefinite duration which would make it impossible for Antrix to take any effective step to fulfill the agreement.
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