S-band spectrum scam[edit]
In India, electromagnetic spectrum, being a scarce resource for wireless communication, is auctioned by the Government of India to telecom companies for use. As an example of its value, in 2010, 20 MHz of 3G spectrum was auctioned for ₹677 billion (US$10 billion). This part of the spectrum is allocated for terrestrial communication (cell phones). However, in January 2005, Antrix Corporation (commercial arm of ISRO) signed an agreement with Devas Multimedia (a private company formed by former ISRO employees and venture capitalists from USA) for lease of S band transponders (amounting to 70 MHz of spectrum) on two ISRO satellites (GSAT 6 and GSAT 6A) for a price of ₹14 billion (US$210 million), to be paid over a period of 12 years. The spectrum used in these satellites (2500 MHz and above) is allocated by the International Telecommunication Union specifically for satellite-based communication in India. Hypothetically, if the spectrum allocation is changed for utilisation for terrestrial transmission and if this 70 MHz of spectrum were sold at the 2010 auction price of the 3G spectrum, its value would have been over ₹2,000 billion (US$31 billion). This was a hypothetical situation. However, the Comptroller and Auditor General of India considered this hypothetical situation and estimated the difference between the prices as a loss to the Indian Government.[122][123][124]
There were lapses on implementing Government of India procedures. Antrix/ISRO had allocated the capacity of the above two satellites to Devas Multimedia on an exclusive basis, while rules said it should always be non-exclusive. The Cabinet was misinformed in November 2005 that several service providers were interested in using satellite capacity, while the Devas deal was already signed. Also, the Space Commission was kept in the dark while taking approval for the second satellite (its cost was diluted so that Cabinet approval was not needed). ISRO committed to spending ₹7.66 billion (US$120 million) of public money on building, launching, and operating two satellites that were leased out for Devas.[125]
In late 2009, some ISRO insiders exposed information about the Devas-Antrix deal,[124][126] and the ensuing investigations resulted in the deal being annulled. G. Madhavan Nair (ISRO Chairperson when the agreement was signed) was barred from holding any post under the Department of Space. Some former scientists were found guilty of "acts of commission" or "acts of omission". Devas and Deutsche Telekom demanded US$2 billion and US$1 billion, respectively, in damages.[127] Government of India's Department of Revenue and Ministry of Corporate Affairs initiated an inquiry into Devas shareholding.[125]
The Central Bureau of Investigation concluded investigations into the Antrix-Devas scam and registered a case against the accused in the Antrix-Devas deal under Section 120-B, besides Section 420 of IPC and Section 13(2) read with 13(1)(d) of PC Act, 1988 on 18 March 2015 against the then Executive Director of Antrix Corporation, two officials of USA-based company, Bangalore based private multimedia company, and other unknown officials of Antrix Corporation or Department of Space.[128][129]
Devas Multimedia started arbitration proceedings against Antrix in June 2011. In September 2015, the International Court of Arbitration of the International Chamber of Commerce ruled in favour of Devas, and directed Antrix to pay US$672 million (Rs 44.35 billion) in damages to Devas.[130] Antrix opposed the Devas plea for tribunal award in the Delhi High Court.