The Enforcement Directorate, which is conducting a probe into the 2005 deal between Devas Multimedia and Antrix Corporation Limited (ACL) for alleged forex violations, is examining the role of a US-based firm in the irregularities.
Bangalore-based Devas Multimedia is under the scanner of the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) for irregularities related to its 2005 deal with Indian Space Research Organisation’s commercial arm, ACL. The pact on delivery of video, multimedia and information services to mobile phones via two geo-stationary satellites was later scrapped in 2011.
It is alleged that the Bangalore-based firm bagged the deal despite its ineligibility, raised investments worth Rs 578 crore from foreign investors based in the US, Mauritius and Singapore then pocketed them, said an agency source. It was alleged that the Bangalore-based firm got a subsidiary incorporated in the US to park there a substantial portion of the foreign funds it had received as remittances on the pretext of “services, salaries, etc,” said the source.
“It was alleged that the Bangalore-based firm submitted false information, claiming it had the technology to provide the services as per the pact to Antrix, and sent away a good portion of the wrongful gain to its US-based subsidiary” said the source.
{{/usCountry}}“It was alleged that the Bangalore-based firm submitted false information, claiming it had the technology to provide the services as per the pact to Antrix, and sent away a good portion of the wrongful gain to its US-based subsidiary” said the source.
{{/usCountry}}Devas has denied all allegations of wrongdoings levelled against it by ED and CBI.
In May, the CBI had twice questioned ISRO’s former chairman G Madhavan Nair in connection with probe in the case since March last year. It grilled Nair on issues including Devas Multimedia’s technical competence to enter into a deal with Antrix.
On Monday, the ED served a show-cause notice on Devas Multimedia for alleged FEMA violations related to receipt of foreign direct investments worth Rs 578.54 crore during 2006 to 2010. The FDIs came from overseas firms like CC Devas Mauritius Limited, Telecom Devas Mauritius Ltd, Deutsche Telkom Asia Private Limited and Devas Employees Mauritius Private Limited.