Devas Multiedia was incorporated in December’ 2004 by the former employees of the Indian Space Research Organisation (ISRO). They entered into an agreement with ISRO’s commercial arm Antrix Corporation to get bandwidth facilities in two proposed satellites for a range of services in the digital media and broadcasting business. Devas made the claims to the Antrix corporation in January’2005, just few days after the incorporation of the company.
Employees of ISRO/Antrix Corporation also conspired with the company for entering into the agreement. On the strength of the agreement, the company raised foreign investment of ₹579 crore and subsequently, illegally transferred 85% of the funds to its subsidiary in the United States on the pretext of investment, payment for services or legal fee
In a separate case, which is based on an FIR registered by the CBI, the ED had conducted money laundering investigation against Devas Multimedia and others. A special court in Bengaluru took cognisance of its charge sheet on February 1.
The agency, in the money laundering case, has alleged that the company and others illegally entered into the agreement with Antrix Corporation by making false claims that it had the ownership and intellectual property rights to use the technology for delivering multimedia services in India
The Foreign Exchange Management Act (FEMA) Adjudication Authority has held Devas Multimedia, its directors, and overseas investors guilty of an illegal foreign investment of ₹579 crore, and imposed a penalty of ₹1,585.08 crore, based on the Enforcement Directorate’s (ED) probe into the Antrix-Devas case.
The ED investigation followed inputs that Devas Multimedia had received the funds in violation of FEMA rules.
