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Government's Response to Antrix-Devas Verdict

27 July 2016 6:49 AM GMT
Governments Response to Antrix-Devas Verdict
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In the UNCITRAL arbitration between GoI and Mauritius based investors of M/s Devas Multimedia Private Limited, under the Indo – Mauritius BIPA (Treaty), the Arbitral Tribunal have issued their award on Jurisdiction and Merits on July 25, 2016.

The Tribunal has said that GoI's essential security interest provisions of the Treaty do apply in this case to an extent. The limited liability of compensation shall be limited to 40% of the value of the investment. The precise quantum has not been determined as yet.

The Tribunal has dismissed the Claims as regards violation of other provisions of the Treaty viz., (i) unreasonable or discriminatory measures; as also (ii) Most Favoured Nation treatment.

The Government of India reiterates that it had invoked the essential security interests through a well reasoned, valid and proper CCS decision. The award of the Tribunal is being examined and legal recourse, as deemed fit, will be taken. We also remain committed to pursue our larger national interests including sovereign strategic security interests in this matter.

Meanwhile, the Enforcement Directorate, has issued a show cause notice to Devas for violation of FEMA, 1999 and are further investigating the case under Prevention of Money Laundering Act, 2002. Enforcement Directorate have issued show cause notice to Devas for contravention to the provisions of FEMA, 1999.

The CBI have filed an FIR against, inter-alia, M/s Devas Multimedia Pvt. Ltd, Bangalore; and other unknown public servants of M/s Antrix/ISRO/DOS. This case is presently under investigation.

Source - PIB.

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