ISRO’s Antrix must pay Devas Multimedia $672 million

Bengaluru/New Delhi: In a jolt to ISRO’s commercial arm, Antrix, an international tribunal has asked it to pay damages worth $672 million (Rs 4,432 crore) to Delhi-based firm Devas Multimedia for “unlawfully” terminating a deal four years ago on grounds of national security.

“The International Chamber of Commerce's (ICC) arbitration body International Court of Arbitration has ruled in our favour in the Antrix-Devas arbitration case and Antrix is liable to pay damages totalling $672 million,” Devas said on Tuesday.

“Devas Multimedia and its shareholders, including highly-regarded international investors, are pleased that the ICC Tribunal unanimously ruled in its favour and found that Antrix is liable for unlawfully terminating the Devas-Antrix Agreement in February 2011,” Devas said.

The Tribunal awarded damages and pre-award interest totalling $672 million to Devas with post-award interest accruing at 18 per cent per annum on that sum until the award is fully paid, it added.

The Tribunal, in its unanimous decision, noted that Antrix had no legal justification for terminating the agreement and that Dr K R Radhakrishnan, who at the time of annulment, was Secretary, Department of Space and Chairman of ISRO, Antrix and the Space Commission, could have prevented he Cabinet Committee on Security (CCS) from approving the annulment.

The CCS had annulled the deal based on the recommendation of the Space Commission on the ground that it was not in the security interests of the country. The award will come up for hearing in the Delhi High Court which has to enforce it. ISRO Chairman A.S. Kiran Kumar when asked for his comments said, “Our legal team is looking into it.”