An international arbitration court has ordered Antrix, the commercial unit of the Indian Space Research Organisation (Isro), to pay $672m in damages to Devas Multimedia for breaching a satellite contract four years ago.

According to Devas, the International Court of Arbitration (ICA) of the International Chamber of Commerce found Antrix liable for unlawfully terminating the Devas-Antrix agreement in February 2011.

Devas Multimedia said in a statement: "Devas Multimedia and its shareholders, including highly regarded international investors, are pleased that the ICC Tribunal unanimously ruled in its favor and found that Antrix is liable for unlawfully terminating the Devas-Antrix agreement in February 2011.

"The ICC Tribunal also awarded damages and pre-award interest totalling $672m to Devas, with post-award interest." 

"The ICC Tribunal also awarded damages and pre-award interest totalling $672m to Devas, with post-award interest accruing at 18% per annum on that sum until the award is fully paid."

In 2005, Devas entered into an agreement with Antrix to lease 70MHz of S-band spectrum from two Isro satellites for 12 years.

Under the deal, Devas was to pay $300m for the airwaves, which it intended to use for communication services. This contract came under scrutiny when a telecom spectrum auction scandal broke out in the country, prompting the previous government to cancel the deal in 2011.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Upon cancellation, the government said it was unable to provide Antrix with an orbit slot in the S-band of frequencies, for commercial use. Devas opposed Antrix’s reasons and started arbitration proceedings in June 2011.

Going forward, the dispute will go to the Delhi High Court for a ruling decision.