Devas shares increased from Rs 10 to 1.25 lakh after controversial deal with Antrix: CBI

Probe into the infamous Antrix-Devas deal, conducted by the Central Bureau of Investigation, has revealed that the worth of a single share of Devas Multimedia Private Limited (DMPL) showed a colossal rise, jumping from a value of rupees 10 to rupees 1.25 lakh soon after the deal was struck. CBI officials on Thursday also revealed that DMPL was also allegedly able to get foreign direct investment worth Rs 579 crore after signing the deal; an amount which also equals the net worth of losses that took place due to the deal, as alleged in the initial FIR lodged in the case in March 2015. According to a senior CBI official, the deal was struck in January 2005, a month after DMPL was incorporated on December 17,2004. 

"The massive rise in share value and FDI was made possible only after the Antrix-Devas deal was struck. This is due to the fact that DMPL's credibility as technology services provider increased in the commercial market overnight," said a CBI official. According to the probe agency, Devas was supposed to provide hybrid services in the form of video, multimedia and information to mobile receivers in vehicle and mobile phones via S-Band through GSAT-6 and GSAT-6A satellites and terrestrial systems in India. The probe agency filed the chargesheet in a Delhi court days after the commercial arm of ISRO, Antrix Corporation, lost its case in the international tribunal of arbitration in The Hague over cancellation of the contract.

According to CBI, an agreement between Antrix Corporation Limited and Bengaluru based DMPL was signed on January 28, 2005 for the lease of 10 S-band Transponders for the said services. On behalf of Antrix Corporation Limited, the then ED signed the said agreement. After the agreement, the two Advisors of said USA based company were appointed as Directors of Bengaluru based company. There was also change in the Board of Directors of Bengaluru based company and both the Advisors, through a USA based company, took over the charge and control of DMPL which was against the spirit of Shankara Committee that recommended for agreement to be executed with an Indian company. 

Officials say that this change was never checked and verified by Antrix Corporation Limited and when a proposal seeking budgetary support of Rs. 269 crores (approx) for approving design, manufacture and launch of GSAT-6/ INSAT-4E (PS1) was placed in the 104th meeting of the Space Commission on May 26, 2005, it was not informed that the agreement had already taken place with Bengaluru based company for leasing out the S-Band. The agency told dna that DMPL had submitted false and incorrect information claiming that it had the technology and was fully capable of delivering the S-DMB services to get the rights of delivering same in India through PS1 and PS2 .

The agency last week filed a charge sheet against former ISRO Chairman G. Madhavan Nair and some senior officials in the Antrix-Devas deal case for allegedly facilitating a wrongful gain of Rs.578 crore to Devas Multimedia Private Limited. 

Beside Nair, those named in the charge sheet include former Additional Secretary in the Department of Space Veena S. Rao, then ISRO Director A. Bhaskar Narayana Rao and Executive Director of Antrix K.R. Sridhara Murthi, Managing Director of Forge Advisors (U.S.A.) and CEO of Devas, Ramachandra Vishwanathan, former ISRO scientist M.G. Chandrasekhar, and directors of Devas Multimedia M. Umesh and D. Venugopal.