US court orders ISRO's Antrix to pay $1.2bn-compensation to Devas

Ramya Patelkhana
·2-min read

US court orders ISRO
US court orders ISRO

30 Oct 2020: US court orders ISRO's Antrix to pay $1.2bn-compensation to Devas

In a major setback for Antrix Corporation, the commercial arm of ISRO, a federal court in the US has directed it to pay compensation of $1.2 billion to Bengaluru-based startup, Devas Multimedia, for canceling a 2005 satellite deal.

Antrix had signed a deal with Devas in January 2005 for building and launching two satellites to provide multimedia services using the space band spectrum.

Details: Antrix asked to pay compensation as per ICC arbitration award

The US federal court for the Western District of Washington asked Antrix to pay $1.2 billion to Devas as per the arbitration award of the International Chamber of Commerce (ICC).

ICC gave the arbitration award in 2015 after the commercial arm of the Indian space agency canceled its 2005 deal with the Bengaluru-based startup launched by some former ISRO officials and American businessmen.

Fact: ISRO's commercial arm to pay compensation along with interest

In his October 27 order, Judge Thomas S Zilly, the US District Judge of the Western District of Washington, ruled that Antrix pay a compensation amount of $562.5 million to Devas, along with the related interest rate, which totals $1.2 billion.

About: A little about the Antrix-Devas deal

In January 2005, Antrix signed an agreement with Devas for leasing S-band transponder on two ISRO satellites: GSAT-6 and GSAT-6A.

The S-band spectrum lies between the 2000-4000MHz frequency and is not only scarce but has enormous commercial value in high-speed terrestrial mobile communication.

However, in February 2011, the government terminated the agreement with Devas, citing the need for the S-band spectrum for security communications.

Timeline of events: Devas commenced arbitration proceedings in June 2011

After Antrix terminated the 2005 deal in 2011, Devas approached several legal avenues and filed lawsuits.

In June 2011, the Bengaluru-based startup began arbitration proceedings in accordance with the ICC's Rules of Arbitration.

Later, in August 2011, Antrix filed a petition with the Supreme Court of India. The SC, however, ruled in May 2013 that it cannot interfere with proceedings initiated under the ICC.

Timeline of events: Antrix wrongfully terminated the agreement: ICC panel

In September 2015, an ICC panel concluded that Antrix wrongfully terminated the deal and awarded Devas $562.5 million plus interest. Later, in the same month, Devas filed a petition in the Delhi HC to enforce the ICC's award.

However, Antrix challenged the award in a Bengaluru court in 2016. Finally, in September 2018, Devas approached the US court seeking enforcement of the ICC award.