Will continue to seize state assets until India starts talks: Devas Multimedia

Days after announcing that a Paris court has awarded Devas Multimedia shareholders a lien on a €3.8 million Paris apartment that housed the Indian Deputy Chief of Mission late last year, Devas shareholders say they have now registered a mortgage against the property.  

"At this stage, the French court ordered a lien on the property in our favour, and a mortgage has been registered," a Devas Multimedia spokesperson told Business Today. 

Britain's Cairn Energy which also had arbitral awards against the Indian government, too, had petitioned French courts for a lien on the same property. However, they dropped their challenge as part of their settlement with the Indian government.

Also Read: Paris court awards Devas shareholders claim on govt's flat worth 3.8 mn euros

In the case of Cairn Energy, the government had initially refused to honour a December 2020 arbitration award, but it brought a law in the last monsoon session of parliament to scrap all retrospective tax demands and refund money collected. 

This, after it faced the prospect of its overseas assets - like flats used by Indian diplomatic staff in Paris and Air India planes in the US - being seized by Cairn Energy to recover dues.

"The Cairn case has nothing to do with Devas. Devas shareholders will continue to enforce the arbitration judgments until they are paid. The Modi government was wise to settle with Cairn because it is futile to continue evading payment on arbitral awards that have been upheld in every instance." The spokesperson said.

In a statement issued on Thursday Jay Newman, senior advisor to the Devas shareholders, said, "India has assets like this all over the world, This is just the beginning. We are planning many more seizures."

Also Read: Devas shareholders can seize 50% of Air India funds held by IATA: Quebec court

Meanwhile, the Indian government has moved quickly to challenge and stay awards favouring the Devas shareholders in courts across the world.   

The Indian legal challenge against Devas' move to seize assets of Airports Authority of India (AAI) and  Air India, which is undergoing a sale to the Tata group in Canada have found limited success. 

A Quebec court last week stayed the seizure of AAI's assets and reduced recovery of Air India's assets held by IATA by 50%.   The Indian government has not responded to the latest statements by Devas shareholders on the Paris judicial award yet. 

However, sources say the government is awaiting a copy of the order through official channels before moving towards a legal challenge.    

"Indian government lost every round in arbitration and has lost every appeal of those judgements. Now, the Indian government is losing every attempt to block enforcement around the world." claimed the Devas Multimedia spokesperson.  The company wants the Indian government to negotiate a settlement with it the way they did with Cairn Energy.

"The status is that India has lost and we are proceeding to enforce the judgement. We will continue to seize every state asset we identify until India returns to the table and negotiates in good faith on a settlement." said the Devas Multimedia spokesperson.

Asked why Devas delayed informing the media about the award from the French court, the company's spokesperson said  "Devas prefers the element of surprise."