Antrix-Devas deal: CBI probes Rs 69-crore transfer by Devas

The transfer of funds from Devas Multimedia’s India entity to the US entity is one of the aspects that is being investigated by the CBI in the Antrix-Devas deal.

Written by Johnson T A | Bengaluru | Published:August 15, 2016 1:06 am

Devas Multimedia, a Bengaluru-based start-up which is being investigated by the CBI and Enforcement Directorate for causing losses to the Indian Space Research Organisation through the 2005 Devas-Antrix deal, moved funds to the tune of Rs 68.78 crore to a US subsidiary in 2008 and 2009, according to the company’s annual report for 2009-10.

The transfer of funds from Devas Multimedia’s India entity to the US entity is one of the aspects that is being investigated by the CBI in the Antrix-Devas deal.

The CBI alleged in a March 2015 FIR that Devas Multimedia siphoned off funds from India to a subsidiary incorporated in the US and that “a substantial part of wrongful gain was remitted to this new company”.

An investment of Rs 58.78 crore by Devas Multimedia in its wholly owned subsidiary Devas Multimedia America Inc in 2009-10 and an investment of Rs 9.99 crore in 2008-09 was reported by Devas Multimedia in its annual report in 2010. “During the year the company has invested $12,500,000 (Rs 587,850,000), previous year $2,000,000 (Rs 99,980,000) in the common stock of its wholly owned subsidiary Devas Multimedia America Inc (DMAI). In consideration of the investment DMAI has allotted 3,125 shares (previous year 500 shares) of common stock to the company,’’ states Devas Multimedia’s 2010 annual report.

The CBI on Thursday filed a chargesheet against four officials of Devas Multimedia, including its US-based CEO and president Ramachandran Viswanathan, and four former officials from ISRO and its commercial arm Antrix Corporation, including former ISRO chairman G Madhavan Nair, for criminal conspiracy, cheating and corruption through the 2005 Devas-Antrix deal. The eight officials have been accused of “being party to a criminal conspiracy with an intent to cause undue gain to themselves or others by abusing official positions’’.

The eight persons have been accused by the CBI of causing a loss of approximately Rs 578 crore to the Indian government through the 2005 deal, where ISRO was to lease two communication satellites for 12 years at a cost of Rs 167 crore to Devas Multimedia. The start-up firm was to provide multimedia services to mobile platforms in India using the space band or S-band spectrum transponders on ISRO’s GSAT 6 and 6A satellites built at a cost of Rs 766 crore.

The 2005 Devas Multimedia-Antrix Corporation agreement was annulled by the UPA government in February 2011 citing usage of the S-band spectrum for security purposes. The deal was annulled through a decision of the Cabinet Committee on Security amid the 2G scandal after questions were raised over 70 Mhz of S-band spectrum worth crores being handed at a low cost to a firm started in 2003 by a few former ISRO officials.

After the NDA government came to power in 2014, the CBI was asked to investigate the Antrix-Devas “sweetheart” deal. In March 2015, the CBI registered a corruption case against Antrix and Devas officials stating, among other things, that FDI funds were diverted to a US-based entity.

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  1. R
    RKD
    Aug 15, 2016 at 6:40 am
    Everybody in ISRO knew Mr.G.Madhavan Nair was a FRAUD. CBI should also should enquire about all the executive decisions of Mr.G.Madhavan Nair who was holding the Charge of Director, LPSC, Director, VSSC, Chairman ISRO and Secretary DoS. lt;br/gt;lt;br/gt;Public also wanted to know the truth of MOON mission. ISRO Scientists reveal that (privately) there were NO scientific evidences to declare that Moon Impact Probe (MIP) landed on the MOON surface. Media can easily cross-check through their online telecast of MOON mission. Note that online telecast stopped after MIP dropping from craft. After some time Mr.Nair came forward and told blatant LIE to entire world that MOON mission was 100% success. A Ex-NASA Scientist Dr. Stewart Nozette is now in US Jail, who was ociating with Mr.Nair and his MOON mission. Read: lt;br/gt;lt;br/gt;lt;br/gt;lt;br/gt;lt;br/gt;lt;br/gt;lt;br/gt;All the above web news are self explanatory on the integrity of Mr.G.Madhavan Nair, Ex-ISRO Chief. Mr.Nair deserves to be sta in THIHAR Jail until his natural death. Very dangerous to the entire world. Good day ahead.
    Reply
  2. R
    RKD
    Aug 15, 2016 at 6:43 am
    Moon scientist arrested on spy charges : Published online 20 October 2009 | Nature | doi:10.1038/news.2009.1030 lt;br/gt;lt;br/gt;Noted Scientist Sentenced to 13-Year Prison Term for Attempted Espionage, Fraud, and Tax Charges : Washington • Press Releases • 2012 lt;br/gt;lt;br/gt; US reveals ISRO moon mission had Israeli spylt;br/gt;US reveals ISRO moon mission had Israeli spylt;br/gt;Last updated: 20 October, 2009lt;br/gt;Kalyan Ray and Nandini, Chandrashekhar, New Delhi/Bangalore, Oct 20, DHNS:
    Reply
  3. R
    RKD
    Aug 15, 2016 at 6:27 am
    Mr.G.Madhavan Nair (Ex-ISRO Chief) and his Binami must be arrested immediately. Why CBI charge sheet dela this much? Why UPA Gov not issued charge sheet against Mr.G.Madhavan Nair? Many more people are in the close list of Mr.G.Madhavan Nair. Hope CBI will issue supplementary charge sheet to them soon. If not trial will not be proper. Charge sheeted Veena Rao (IAS) is apparently a scape goat.
    Reply