The Bill to withdraw the retrospective tax does not address India’s refusal to honour international arbitration awards or bilateral investment treaties, according to Jay Newman, senior advisor to Devas shareholders.

Shareholders of Devas have been fighting a legal battle with India over enforcing an arbitration award in relation to their dispute with Antrix Corporation.

“The reports of the legislation, if true, are an encouraging sign that India intends to reverse course in its shabby treatment of investors. However, the Bill does not address India’s refusal to honour international arbitration awards or bilateral investment treaties. We hope this changes, but until then, Devas shareholders will continue to enforce our legal rights in India and around the world for as long as it takes to obtain justice,” Newman said.

Shareholders of Devas Multimedia have obtained confirmation of the arbitration award against Antrix in multiple countries including the Netherlands, Belgium, France, the UK and Luxembourg. This could be a step towards filing for seizure of assets owned by Indian public sector companies in these countries to enforce the award.

PCA ruling

In 2012, Devas shareholders incorporated in Mauritius moved the Permanent Court of Arbitration (PCA) against India, alleging violation of the obligation to protect shareholders’ interest as guaranteed under the India-Mauritius Bilateral Investment Treaty (BIT). The PCA ruled in favour of Devas shareholders in 2016, finding India in breach of the obligation to accord fair and equitable treatment leading to unlawful expropriation of Devas’ business. Subsequently, in 2020, the PCA awarded Devas over $111 million, plus interest against India.

Shareholders and investors of Devas Multimedia have also filed a petition in a US court to attach the assets of Air India to enforce the arbitration awards against India.

The appeal is to declare that Air India is legally indistinct from the Indian government, find the flag-carrier jointly and severally liable for any judgment against India, and allow execution, attachment, and other orders, requiring the airline to satisfy the liability owed to Devas’ shareholders.