Transponder scam: Devas got premium of Rs 1.14L on 10 share

NEW DELHI: Devas Multimedia had paid Rs 58 crore to Antrix Corporation in 2006-07 for the controversial contract to lease S-band transponders on Isro satellites. Details of this payment raise uncomfortable questions about the silence of the top brass as well as the department of space for all these years.

In the wake of media reports alleging a scam in the contract for leasing transponders to Devas, the government now claims that the contract has been under review for the past few months and is to be cancelled. Indian Space Research Organisation chief K Radhakrishnan on Tuesday said the deal with Devas did not result in any financial loss to the government.

However, thanks to the lucrative contract it had with Isro, Devas, a company floated by mostly former Isro officers, was able to get Rs 1.14 lakh premium on its share worth Rs 10 when it divested stake to Deutsche Telekom in 2008. Using its access to S-band transponders in two satellites, Devas would have delivered multimedia and internet services via satellite and terrestrial wireless systems to fixed and mobile terminals.

Devas deposited Rs 58.37 crore with Antrix Corporation, the marketing arm of Isro on June 21, 2006 and June 22, 2007. The second instalment of $6.67 million was to be paid after the critical design review of the satellites was completed. And the third instalment of $13.33 million was to be paid after the pre-shipment review. The second and third instalments have not been paid yet because of the delay in the satellites, and not because of any review of the contract, according to Devas documents.

According to the schedules to the accounts of Devas, the company has paid Rs 583,733,666 as the first instalment for leasing the two primary satellites, PS1 and PS2. The satellites are to be on lease for 12 years with Devas, according to the agreement. The capacity fee for each of the satellites was to be $20 million (approximately Rs 100 crore), payable in three equal instalments. The first part was Rs 58 crore.

Documents accessed by TOI show that 28,349 class C shares were issued to Deutsche Telekom Asia Pte Limited, Singapore, in August 2008. A holder of class C shares has the first right to receive 8% cumulative dividend, along with class A and B shareholders.