India could pay up to $1bn in damages as it loses a huge arbitration internationally

Having lost a huge case in international arbitration, India might have to pay up to a billion dollars in damages. The case involved cancelling a contract that involved leasing two satellites and their spectra.

Other than the heavy penalty, the decision will also malign the country’s reputation with its international investors.

The International Criminal Court, sitting in The Hague (Netherlands) has ruled against the Indian government in a case that was filed by Devas Multimedia. As per reports, the contract was cancelled in 2005 by Antrix, the commercial arm of the state-run ISRO.

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It was in 2015 that Devas had filed its case at the international court of arbitration against Antrix, citing that it had agreed to lease two long-term satellites operating in the S-band spectrum, but cancelled the contract.

The tribunal said in its judgement that the Indian government was unfair in cancelling the contract, as this caused undue losses to several companies that had put huge amounts of money in Devas Multimedia.

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