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

A Paris court on Thursday awarded Devas Multimedia shareholders a lien on the government's property - a Paris apartment that currently serves as the residence of the Indian Deputy Chief of Mission in the posh 16th arrondissement.

The apartment valued at 3.8 million euros is the same one that Cairn Energy froze last year as part of its efforts to force the government to pay $1.7 billion awarded by an international tribunal. "India has assets like this all over the world.

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

"This is just the beginning. We're planning many more seizures," said Jay Newman, senior adviser to Devas Shareholders.

Devas shareholders in effect seized the property in Paris's upmarket area after securing an asset freeze order from the Paris court permitting the company to register a mortgage on the property. 

The development comes days after a court in Quebec, Canada dismissed a petition filed by Air India seeking quashing of an order that allowed the seizure of the national carrier's assets by Devas shareholders. 

As per the judgement passed on January 8 by Judge Michel A. Pinsonnault of the Superior Court of Quebec, Devas shareholders can seize up to 50 per cent of Air India's funds held by the International Air Transport Association (IATA) retrospectively and prospectively.

There has been no reaction from the government of India on the issue. However, a senior aviation ministry official told Business Today TV that the government will study the judgement and decide on the next step.

Earlier this month, the Canadian court had ordered funds seizure of Air India and AAI, which have been held by IATA, in a case filed by Devas Multimedia shareholders to enforce the arbitration award regarding Antrix deal's cancellation.

Also Read: Devas arbitral to not impact disinvestment of Air India: Govt sources

On October 27, 2020, a US court had asked Antrix Corporation, the commercial arm of the Indian Space Research Organisation (ISRO), to pay a compensation of $1.2 billion to Devas Multimedia, a Bengaluru-based start-up, for cancelling a satellite deal in 2011.

According to an agreement signed in January 2005, Antrix agreed to build, launch and operate two satellites and to make available 70 MHz of S-band spectrum to Devas, which the latter planned to use to offer hybrid satellite and terrestrial communication services throughout India.

The agreement was terminated by Antrix in February 2011. In June 2011, Devas commenced arbitration proceedings under the Rules of Arbitration of the International Chamber of Commerce.

In September 2015, the arbitration tribunal asked the commercial arm of ISRO to pay $672 million.