The government has reportedly directed Antrix Corporation to file a petition to wind up Devas Multimedia, a Bengaluru-based firm that has filed lawsuits seeking hundreds of millions of dollars in compensation from it over a cancelled satellite deal.
As per a rule in the Companies Act, 1956, a petitioner can file for the winding up of a company if the petitioner believes that the concerned company has been formed for fraudulent and unlawful purposes.
In this regard, Antrix Corporation has been authorised to petition the National Company Law Tribunal against Devas Multimedia.
Antrix Corporation and Devas Multimedia have been embroiled in a legal battle, both in India and in the United States, after the government cancelled a satellite deal in 2012 citing national security issues.
Earlier in 2005, Antrix had signed a deal with Devas to build two communication satellites, which were to use the S-band spectrum to offer hybrid satellite and terrestrial communication services throughout the country. However, the deal soon had to be scrapped off amidst allegations that the S-band had been offered at a throwaway price.
