The Indian government attempted to negotiate a settlement with start-up firm Devas Multimedia and former ISRO officials while simultaneously pursuing legal action against them. This negotiation involved NSA Ajit Doval and former ISRO chairman A S Kiran Kumar meeting with Devas officials in Paris in February 2020 to settle disputes arising from the cancellation of a satellite deal between Devas and Antrix Corp in 2011.
The talks were reported by The Financial Times on July 13, 2021, and took place despite ongoing prosecution by the CBI and Enforcement Directorate against Devas officials in India and the US, as well as former ISRO officials. Antrix Corp also sought liquidation of Devas Multimedia in India in 2021.
Lead counsel Matthew D McGill stated that the negotiations aimed to settle all disputes and claims between the parties and to resolve criminal and ED proceedings initiated by the government of India against Devas. Despite reaching an agreement on key terms reflected in a draft written agreement, the Indian government walked away without providing any reasons.
The foreign investors in Devas include a consortium from Mauritius, the German telecom major Deutsche Telekom, and Columbia Capital. The settlement attempt was not related to the criminal proceedings by the ED, according to sources close to the government.
Devas Multimedia investors are seeking compensation from Antrix for the cancellation of the 2005 deal, and have filed arbitrations against the Indian government to enforce the compensation award. The government has challenged the arbitration awards in several international courts.
The ED has filed an application seeking to declare the US-based CEO and founder of Devas Multimedia, Ramachandran Viswanathan, as a fugitive economic offender. The CBI has accused eight persons, including former ISRO chairman G Madhavan Nair and former Antrix executive director K R Sridharamurthi, of causing a loss of approximately Rs 578 crore to the Indian government in the 2005 deal.
McGill and Newman criticized the Indian government for abusing the criminal justice system and using it to gain negotiation leverage. They also criticized the government for using the legal system improperly to avoid paying what is owed in a commercial dispute.
The deal involved Antrix launching two communication satellites for Devas Multimedia, agreed upon during the UPA government, but was annulled in 2011 following allegations around the contract in the backdrop of the 2G scam. After the NDA came to power in 2014, it started a CBI and ED investigation into allegations of corruption and money laundering in the deal.
