HomeBusinessDevas Antrix Deal: Congress should explain its role in Devas-Antrix deal, says...

Devas Antrix Deal: Congress should explain its role in Devas-Antrix deal, says FM Nirmala Sitharaman citing SC order

Finance minister Nirmala Sitharaman challenged the Congress get together to come back clear on Antrix-Devas deal after Supreme Court‘s order on Monday upholding the liquidation.

The Congress authorities did not appoint any arbitrator after Devas went for worldwide arbitration displaying that it did not have the intent to problem the fraud, finance minister Nirmala Sitharaman stated.

She additional slammed the Congress for not invoking the nationwide safety clause.

“This kind of selling of primary endowments like wavelengths, satellites or spectrum band, giving it away to private parties and making money from private parties & making a deal out if it marks the feature of the Congress govts,” Nirmala Sitharaman stated on the Devas-Antrix challenge.

The Supreme Court dismissed the enchantment from Devas difficult the NCLAT order for winding up of the corporate.

“If the seeds of the business relationship between Antrix and Devas have been a product of fraud perpetrated by Devas, each a part of the plant that grew out of these seeds, such because the Agreement, the disputes, arbitral awards, and many others., are all contaminated with the poison of fraud.

“A product of fraud is in conflict with the public policy of any country including India. The basic notions of morality and justice are always in conflict with fraud and hence the motive behind the action brought by the victim of fraud can never stand as an impediment,” the bench stated.

The business arm of ISRO, Antrix, had filed a winding up petition earlier than the NCLT.

The NCLT had stated Devas Multimedia was included with a fraudulent motive to collude and connive with the then officers of Antrix Corporation to get bandwidth from it by coming into into an settlement in 2005, which was subsequently cancelled by the federal government.

Devas challenged the order in NCLAT which dismissed the petition.

Devas was included in 2004 and in January 2005 it entered into an settlement with Antrix underneath which the business arm of ISRO will launch two satellites and lease out S band spectrum to Devas which might use it for hybrid satellite tv for pc and terrestrial communication companies.

In 2011, the then UPA-II authorities cancelled the deal citing “national security” causes. This after the UPA authorities confronted allegations of quid professional quo or a sweetheart deal.

The high court docket stated it doesn’t know if the motion of Antrix Corporation, the business arm of the Indian Space Research Organisation (ISRO), in searching for the winding up of Devas could ship a incorrect message to the neighborhood of traders.

“But allowing Devas and its shareholders to reap the benefits of their fraudulent action, may nevertheless send another wrong message namely that by adopting fraudulent means and by bringing into India an investment in a sum of Rs 579 crores, the investors can hope to get tens of thousands of crores of rupees, even after siphoning off Rs 488 crore,” the bench stated.

The apex court docket refused to agree with the submission of Devas that the legal criticism filed for the offences punishable underneath Section 420 learn with Section 120B IPC, has not but been taken to its logical finish.

“It is contended that in case the officers of Antrix and shareholders of Devas are acquitted after trial, the clock can’t be put again if the corporate is now wound up. Attractive as it could appear at first blush, this rivalry can’t maintain water, if scrutinised a bit of deeper.

“The standard of proof required in a criminal case is different from the standard of proof required in the proceedings before NCLT. The outcome of one need not depend upon the outcome of the other, as the consequences are civil under the Companies Act, 2013 and penal in the criminal proceedings,” the bench stated.

(With inputs from PTI)

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular