ISRO- Antrix-Devas Spectrum Scam.

Antrix-Devas Spectrum Scandal.

After CAG brawl, ISRO crawl.

Devas Multi-media (p)ltd Banglore founded in 2004 owned by ISRO’s staff and

Investor with 17% stake Dutsche Telekom AG, Bonn.Germany, for 75 million US $.

Antrix Corporation ltd. Banglore, 560231, is the marketing agency of GOI to market ISRO’s hardware, manpower and software.

ISRO made agreement with Devas for launch of two satellites besides providing 70MHZ of S-Band Spectrum for a period of 20 years without going through bidding process. It involves ISRO to build two S-Band Satellites leased 90 % share to Devas without going through bidding process.

ISRO Head Madhavan Nair, A.Bhaskarnarayana Scientific Secretary of ISRO, K.Sridharamurthi Antrix MD, and KN Sankara ISRO Satellite Director have been ordered by PMO debarred from holding any government post.

Antrix, the commercial arm of ISRO, had signed a deal with Devas in January 2005 to provide it with crucial S-Band wavelength which is primarily kept for strategic interests of the country.

The spectrum was meant for running digital multimedia service by leasing 90 per cent transponders on two satellites - GSAT 6 and GSAT 6A.

Following complaints of massive irregularities, the government scrapped the contract in 2010 and ordered an enquiry by the high-powered review committee last February.

Based on the committee's findings, the government had on May 31, constituted high-level team under the chairmanship of former Central Vigilance Commissioner Pratyush Sinha to further examine the facts and circumstances of the agreement.

The team has found uneven share holding patterns and rise in capital in the Devas between its inception in December 2004 and March 2010. The company was established by M/s Forge Advisors-USA with a share capital of Rs one lakh.

According to the report, soon after the signing of the agreement the ordinary share capital had increased to over Rs 5 lakh with 12 shareholders including three members of the FA-USA team who held 60 per cent of the ordinary share capital and the two Mauritius-based entities who held one ordinary share and 50 per cent of the preferential shares each.

It noted as "unusual" the rise in its share capital from Rs one lakh to about Rs 18 lakh in 2010 "with no asset base and no Intellectual Property rights or patent in the relevant technology, and which has been making losses since inception, to collect Rs 578 crore as share premium from foreign investors."

The scandal involves more than 2 lakh crores of loss of money to the Exchequer by this deal as per findings of the Comptroller and Auditor General of India.