Thursday, June 02, 2022

Devas shareholders seize $25m more in AAI, Air India’s Canadian assets

Devas shareholders have seized an additional $25 million in assets based in Canada from the Airports Authority of India (AAI) as well as Air India. In total, Devas shareholders have seized a total of $55 million so far.

This comes after the Canadian courts granted the Indian government partial leniency in January. The court noted that Devas shareholders can only seize 50 per cent of Air India assets held by IATA, and had quashed the order permitting seizure of funds belonging to AAI. This came after AAI had challenged the December order passed by a court in the case related to Devas Multimedia.

The court had granted Devas shareholders the right to seize assets belonging to the AAI in Montreal to enforce a $111-million award given by United Nations Commission on International Trade Law.

However, according to the information shared with BusinessLine, the $55 million under seizure order is the result of enforcement proceedings undertaken in Canada targeting monies flowing through IATAI from AAI and Air India. This includes the normal and orderly collection of overflight fees, landing fees and ticketing fees.  

Now, an additional $25 million have been seized, over the $30 million already seized as of December 31, 2021.

Lead counsel for Devas Shareholders, Matthew D McGill, partner at Gibson, Dunn & Crutcher, said, “The announcement of $55 million under seizure by Devas shareholders is a confirmation of what we have said from the beginning. Devas will be relentless in its efforts to enforce our lawful international arbitral awards in courts around the world.”

The $111-million award has been confirmed and enforced in many jurisdictions internationally, besides Canada. In January, a Paris court allowed Devas shareholders to seize an apartment that houses the Indian Deputy Chief of Mission, valued at €3.8 million, as part of enforcing the $111-million award.

02/06/22 Ayushi Kar/Business Line

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