ED probing US firm role in Antrix deal

NEW DELHI: The Enforcement Directorate (ED), probing the 2005 deal between Devas Multimedia and Antrix Corporation Limited (ACL) for alleged foreign exchange violations,

Published on: Jun 9, 2016, 07:22:55 IST

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NEW DELHI: The Enforcement Directorate (ED), probing the 2005 deal between Devas Multimedia and Antrix Corporation Limited (ACL) for alleged foreign exchange violations, is also examining the role of a US-based firm in the irregularities.

It is alleged that the Bangaluru -based firm bagged the deal despite its in eligibility, raised investments worth Rs 578 crore from investors based in the US, Mauritius and Singapore and pocketed them, said a source in the probe agency.

Devas Multimedia reportedly incorporated a subsidiary in the US to park a substantial portion of foreign funds received as remittances on the pretext of “services, salaries, etc”, a source said.

“It was alleged that the Bangalore-based firm submitted false information, claiming it had the technology to provide services to Antrix, and sent away a good portion of the wrongful gain to its US-based subsidiary,” said the source.

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