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Antrix-Devas deal: ED slams Fema violation notice

Agency registered a Fema case in 2012 and is also probing the deal under anti-money laundering laws

Policy Pulse
Publish Date: Jun 6 2016 5:44PM | Updated Date: Jun 6 2016 5:44PM

Antrix-Devas deal: ED slams Fema violation notice
The Enforcement Directorate (ED) on Monday slammed, Rs 1,200 crore Foreign Exchange Management Act (Fema) violation notice to the private multimedia company Devas by Antrix in connection with alleged "wrongful" gain made by the company.
 
An order issued by the agency's special director (southern region) in Chennai found M/s Devas Multimedia Private Limited, Antrix and others "contravening" the provisions of the Fema on at least three counts after completing the over three year investigation in the deal that was struck in 2005.
 
The agency had registered a Fema case in 2012 and is also probing the deal under anti-money laundering laws. 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, accessed by PTI, 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.