Timely action by Corporate Affairs Ministry (MCA) prevented ₹15,000-crore fraud in Devas-Antrix deal, Government sources said on Monday.
This response has come on a day when the Supreme dismissed an appeal filed by Devas Multimedia and its shareholder Devas Employees Mauritius Pvt Ltd against an NCLT order to wind up the company.
“This order amplifies that no entity or person can get away after committing fraudulent activities in India and strengthens the resolve of this government to bring in an environment of responsible corporate governance in India,” a government source said.
To file petition
According to sources, based on a reference, MCA authorised Antrix (a PSU under Defence Ministry) to file a petition for winding up before the National Company Law Tribunal, Bangalore (NCLT) of Devas Multimedia Pvt Limited on the grounds of fraudulent conduct of affairs when Antrix and Government of India were having an international Arbitration award against it of over ₹15,000-crore hanging over their head.
The NCLT passed a provisional Winding up order on January 19 last year appointing the Official Liquidator. Aggrieved by the NCLT’s order, the DEVAS EMPLOYEES MAURITIUS PRIVATE LIMITED (DEMPL) who is only a minority shareholder of Devas moved to National Company Law Appellate, Chennai. The NCLAT dismissed the appeal and granted liberty to Applicant to file necessary interlocutory application before the NCLT Bengaluru in the winding-up Petition for impleadment of the Applicant. Thereafter, around February 27, the Applicant filed approached NCLT seeking to implead itself in the Winding Up proceedings.
Also read: How Antrix lost $1.2-b arbitration award to Devas at Washington court
Later a petition filed by DEMPL challenging the constitutionality of action by MCA, but here too petition was dismissed. Meanwhile, NCLT, On May 25 confirmed the winding up proceedings. This was challenged in NCLAT but there too it was dismissed. Finally, the matter reached the Supreme Court and there too it was dismissed.