Cabinet annuls Devas-ISRO S-band deal

Faced with sharp criticism and opposition attack, the union cabinet on Thursday decided to cancel the controversial S-band spectrum deal between the private firm Devas and Antrix, the commercial arm of Indian Space Research Organisation (ISRO).

The Cabinet Committee on Security (CCS) which met here on Thursday decided to annul the deal which came under media scrutiny for offering the scarce band to the company allegedly at throwaway price.

Union Law Minister Veerappa Moily briefing the media said if the government is legally challenged by Devas it would take up the same before the court.

Devas had earlier threatened with legal action if the deal was cancelled.

“This can be annulled. The government cannot afford to hand over this kind of a S-band to even Antrix,” Moily said.

“It can be annulled under the provisions of the agreement and also under the law,” he said.

“Even if they go to court they will not succeed,” Moily said.

“The government or the PM is not at fault, but we will go into the root of this matter,” he said.

On compensation the government has to pay, he said every contingency has been taken.

Prime Minister Manmohan Singh on Wednesday said the contract was not operational and there was no ?backroom talk? in the PMO on the deal ever.

The opposition Bharatiya Janata Party (BJP) said what went wrong should be known too and scrapping is not enough.

“People have to answer for all the failures,” said BJP spokesperson Nirmala Seetharaman.

The Centre had earlier constituted a high-powered review committee to ascertain the procedural aspects of the agreement between Antrix and Devas.

The ISRO said the committee, inter alia, will review the technical, commercial, procedural and financial aspects of the agreement between ANTRIX and M/s. Devas Multimedia Pvt. Ltd, besides the adequacy of procedures and approval processes followed by ANTRIX, ISRO and Department of Space, and to suggest improvements and changes.

The Committee has been directed to submit its recommendations to the Prime Minister as Minister-in-charge of the Department of Space within one month.

The Committee Members are B. K. Chaturvedi, Member Planning Commission and former Cabinet Secretary and Prof. Roddam Narasimha, Member Space Commission.