NCLT DIRECTS LIQUIDATION OF DEVAS DUE TO ANTRIX DEAL

The National Company Law Tribunal (NCLT) has directed to initiate the liquidation process of Devas Multimedia by allowing the petition filed by Antrix Corporation, a commercial arm of the Indian Space Research Organisation.

The Bengaluru bench of the NCLT has said Devas Multimedia was incorporated with a fraudulent motive to collude and connive with the then officials of Antrix Corporation to get bandwidth from it by entering into an agreement in 2005.

The tribunal also confirmed the appointment of the provisional liquidator by it earlier on January 19 and directed him to take “expeditious steps to liquidate” the firm to prevent it from perpetuating its fraudulent activities and abusing the law.

“The incorporation of Devas was with fraudulent motive and unlawful object to collude and connive with then officials of Antrix and to misuse/abuse process of law, to bring money to India and divert it under dubious methods to foreign countries,” the tribunal noted.

It further observed that the Government of India has “sovereign powers” to frame and change its policies, which includes the termination of the agreement in question.

“In the light of aforesaid facts and after duly considering the legal position and exercising the power conferred on the tribunal… company petition is allowed by ordering to wind up Devas Multimedia Pvt Ltd,” said a two-member NCLT bench.