WEB DESK
An Adjudicating Authority under the Foreign Exchange Management Act (FEMA) has imposed a penalty of over 1585 crore rupees on Devas Multimedia in connection with the violation of foreign exchange laws in the Antrix-Devas deal case.
Enforcement Directorate, ED in a release said, the penalty was imposed after the Authority held the company, its Directors and Foreign Investors guilty in the case of illegal foreign Investment of about 579 crores.
The ED said, in the case investigation was initiated on the basis of information that investments received by Devas Multimedia from person residents outside India were in contravention of provisions of FEMA Act.
The company was incorporated in 2004 by a few ex-employees of the Indian Space Research Organisation -ISRO and it subsequently entered into an agreement with Antrix Corporation, a public sector undertaking under the control of ISRO.
As per the agreement, Antrix Corporation agreed to provide bandwidth in two proposed satellites for services to be offered on a commercial basis in Digital Media and Broadcasting by Devas Multimedia.