Setback for ISRO; court tells it to pay Devas $672 million in damages
September 29, 2015 19:17
An international tribunal has asked the commercial arm of the Indian Space Research Organisation to pay Bengaluru-based space technology firm Devas Multimedia Pvt Ltd $672 million in damages for cancelling a contract four years ago on grounds of national security.
The ruling is a setback to Isro and the government, although the penalty is far short of the $1.6 billion Devas had sought in damages, calculated to include the value of its business, interest and costs, in the arbitration proceedings it initiated against Antrix Corporation Ltd, the commercial arm of Isro.
The ruling by the International Court of Arbitration of the International Chamber of Commerce relates to a 28 January 2005 agreement between Devas and Antrix, under which Devas was to lease as much as 70Mhz of S-band spectrum from two satellites that were to be launched by Isro.
As part of the deal, Devas was to pay Antrix around $300 million for the right to use the spectrum for 12 years, extendable by an additional 12 years.
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