NCLAT upholds NCLT order to wind up Devas Multimedia

The National Company Law Appellate Tribunal (NCLAT) has upheld an order of the Bengaluru bench of the National Company Law Tribunal (NCLT) to wind up Devas Multimedia Private.
In its order, the NCLAT stated that Devas, which the NCLT had stated was integrated “with fraudulent motive and unlawful object to collude and connive with then officials of Antrix and to misuse/ abuse process of law”, didn’t have the both the expertise, or the licences and the federal government approvals to execute the settlement that they had signed in 2005.
“The fact that fraud has been committed is apparent on the face of every record available before this Tribunal. A trial would indicate who was responsible for committing the fraud with which this Tribunal is not concerned,” the NCLAT stated in its order.
Earlier, the NCLT Bengaluru bench had ordered winding up of Devas Multimedia on a petition filed by the Ministry of Corporate Affairs. It had noticed that Devas was solely integrated to collude with the then officers with the intention to “bring money into India and to divert it under dubious methods to foreign countries”.
The Devas Multimedia-Antrix Corp settlement was cancelled by the then UPA authorities in 2011 after allegations of the deal being a quid professional quo “sweetheart deal” had been raised. In 2014, the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) had been requested to probe the deal.
Signed in 2005, the deal allowed ISRO to lease two communication satellites to Devas for 12 years for Rs 167 crore. Devas, which then was a startup integrated only for the aim, was to supply audio-video providers to cellular platforms in India utilizing the house or S-band on ISRO’s GSAT 6 and 6A satellites.