Monday, February 14, 2022

Failed 2005 satellite deal: US court stays proceedings in Devas investors’ move to identify Air India assets in America

Bengaluru: A US federal court has stayed efforts by foreign investors in the Bengaluru headquartered start-up Devas Multimedia Pvt Ltd to identify Air India as an alternate of the Government of India to recover compensation for a failed 2005 satellite deal between Devas Multimedia and Antrix Corporation, a commercial arm of ISRO.

The US court for the southern district of New York imposed a stay last week on proceedings in pleas—filed by three Mauritius investors and the German telecom major Deutsche Telekom—for the identification of Air India as an alter ego of India and to find its assets in the US to facilitate recovery of compensations awarded by international tribunals over the failed satellite deal.

The court has also turned down a plea by Air India to dismiss the demand by Devas’ foreign investors to identify its assets. Air India cited its take over by the Tata Sons group on January 27, 2022, to seek the dismissal of the plea by the Devas’ foreign investors.

It stayed the proceedings in the cases filed by Deutsche Telekom and CC/Devas Mauritius, Telcom Devas Mauritius, and Devas Employees Mauritius Limited on the grounds that the foreign investors were seeking confirmation of compensations in another US court (in the district of Columbia) where the Republic of India has sought sovereign immunity to oppose the Devas’ investors.

A January 8, 2022, order of a Superior Court in the Quebec region of Canada—identifying Air India as an alter ego of the Indian government—was cited in the New York court by the Mauritius investors in the start-up firm Devas Multimedia to seek seizures of the carrier’s assets in the US to recover compensation over the failed 2005 deal.

14/02/22 Indian Express

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