NEW DELHI, Oct 31: A US court has ordered Antrix Corporation, the commercial arm of the ISRO, to pay a compensation of $ 1.2 billion to Devas Multimedia for cancelling a satellite deal.

As per the agreement of January 2005 between Antrix and Bengaluru-based Devas, Antrix was to build, launch and operate two satellites and make available 70 MHz of S-band spectrum to Devas. The agreement was terminated in 2011 by Antrix. Devas approached several courts.

US District judge Thomas S Zilly, of Western District of Washington, Seattle, ruled that Antrix Corporation pay a compensation of USD562.5 million to Devas Multimedia Corporation and the related interest rate amounting to a total of USD1.2 billion. Devas had argued that three international tribunals and nine arbitrators had found the termination of the agreement wrongful. Devas argued that the US court has jurisdiction in the case as Antrix has business in the district as also in the whole US.

The deal between Antrix and Devas was signed in 2005. Antrix was to provide 70 MHz of the scarce S-Band space segment to Devas for its digital multimedia services. For this Antrix was to lease transponders of the proposed satellites GSAT-6 and GSAT-6A to Devas for its digital multimedia services. Devas was to pay Antrix a $300 million over 12 years. The project was to provide broadband wireless services to remote areas in India. The deal failed to take off. When the Government cancelled the deal on February 17, 2011 following allegations of irregularities in the deal, Devas took Antrix and the Government to the International Court. Devas claimed $1.6 billion in damages. In 2015, the ICC arbitration court asked Antrix to pay damages of $672 million to Devas. Thereupon, Antrix filed an arbitration suit in Bengaluru.

Antrix Corporation is a Government-owned company under the Department of Space. Set up in 1992, it serves as the commercial wing of the ISRO products.

Devas Multimedia Private Limited offers satellite based multimedia services using internet and satellite. It is based in Bengaluru. Devas Multimedia was set up by former space engineers from the ISRO and was funded by foreign investors, some of them from Mauritius.