ED registers money laundering case in Antrix-Devas deal

Based on the CBI case registered in March, it has instituted a fresh case under stringent provisions of the Prevention of Money Laundering Act.

July 31, 2015 03:20 am | Updated November 17, 2021 03:42 am IST - NEW DELHI:

The Enforcement Directorate has registered a money laundering case in connection with the > Antrix-Devas spectrum deal worth Rs.1,000 crore, which is also being probed by the CBI.

The Directorate has already been scrutinising the 2005 agreement under the Foreign Exchange Management Act since 2012. Now, based on the CBI case registered in March, it has instituted a fresh case under stringent provisions of the Prevention of Money Laundering Act.

In its own case, the CBI has named Devas Multimedia Private Limited, the then Antrix Corporation executive director K.R. Sridhara Murthi, , R. Vishwanathan and M.G. Chandrasekhar (former ISRO scientist) of Forge Advisors LLC, USA; and Bengaluru-based Devas Multimedia, besides unknown officials of Antrix, ISRO and Department of Space.

According to the CBI, Mr. Murthi and others allegedly favoured Devas Multimedia by giving the rights for delivery of video, multimedia and information services via S-band, causing wrongful gain of Rs.578 crore to the “ineligible” company.

The company had allegedly submitted false information about its capability to deliver the services. The CBI probe revealed that the wrongful gain, of which R. Vishwanathan and M.G. Chandrasekhar (former ISRO scientist) were alleged beneficiaries, was made through various investors from the U.S., Mauritius, Singapore and other countries.

The CBI alleges that with an intention to siphon off the amount from its bank accounts in India, Devas Multimedia got a subsidiary named Devas USA incorporated and transferred the funds to it on various pretext.

“The illegal gratification was paid to accused government officials from that amount. Devas had been set up by Forge Advisors in 2004 with a share capital of just Rs. 1 lakh,” said a CBI official.

Days after the Business Line-The Hindu expose on February 7, 2011, the government had scrapped the agreement under which ISRO’s marketing arm Antrix was to provide 70 MHz of S-band spectrum to Devas.

As part of the agreement, 10 transponders in satellites GSAT-6 and GSAT-6A - then to be launched by ISRO for the purpose - were to be leased out to Devas in lieu of payments to be made over 12 years.

“Soon after the agreement, Mr. Chandrashekhar and Mr. Vishwanathan were made directors in Devas, with the former holding the highest number of company shares till 2008-09. Through US firm Forge Advisors, the two allegedly took over control of Devas in violation of the Shankara Committee recommendations,” said the CBI official.

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