Antrix-Devas deal: ED to attach assets of accused under PMLA

After slapping a Rs 1,200 crore FEMA violation notice in the Antrix-Devas deal, the ED is set to attach assets worth crores of the accused as part of its money laundering probe in the case.
Officials said the agency is in the process of identifying and valuing the movable and immovable properties of a number of people named in the case and such assets will be frozen as part of the investigation in the deal under the provisions of the Prevention of Money Laundering Act (PMLA).
The agency has also been probing the case for forex violations and had yesterday issued a show cause notice for alleged violations of Rs 1,200 crore to Devas Multimedia Private Limited, Antrix Corporation and others under the Foreign Exchange Management Act (FEMA).

The attachment of assets under anti-money laundering laws is aimed at depriving the accused from obtaining benefits of their ill-gotten wealth.
Apart from the Enforcement Directorate (ED), the CBI is also probing the deal in connection with the alleged "wrongful" gain made to Devas by Antrix, the commercial arm of ISRO.
An order under FEMA issued by the agency's Special Director (southern region) in Chennai found Devas, Antrix and others "contravening" the provisions of the said law on at least three counts after completing the over three year investigation in the deal that was struck in 2005.

The agency registered a FEMA case in 2012. Antrix 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.

As per the order, the total violation under FEMA that has been established in the case is Rs 1,217.76 crore.
If the charges stand after the adjudication process that will begin now, the accused will be liable to penalty which could be three times of the amount contravened.
Following complaints of massive irregularities, the UPA government had scrapped the contract in 2010 and ordered an inquiry by a high-powered review committee headed by the then CVC Prityush Sinha in February, 2014 following which CBI took up the case.
CBI had slapped sections like 120-B (criminal conspiracy) and 420 (cheating) of Indian Penal Code along with relevant sections of Prevention of Corruption Act against the accused.

The Antrix-Devas deal had seen the early exit of G Madhavan Nair as Chairman of ISRO as he was the head of the Governing Council of Antrix when the deal was finalised.
CBI had alleged that the accused persons had entered into a criminal conspiracy and the government officials abused their position by favouring Devas by unauthorisedly giving it rights for delivery of videos, multi-media and information services to mobile phones using S-Band through GSAT-6 and GSAT-6A satellites and terrestrial systems in India.