Devas Vs. ISRO's Antrix: The Satellite Deal That Sparked a Billion-Dollar Legal War

The US Supreme Court has recently ruled that the $1.29 billion lawsuit against ISRO-owned Antrix Corporation can proceed in American courts, marking a significant escalation in the long-running legal dispute between India and Devas Multimedia. The case revolves around a 2005 satellite deal between Antrix and Devas, which was abruptly canceled in 2011 by the Indian government over national security concerns.

The Deal and Its Collapse

In 2005, under the leadership of ISRO Chairman G. Madhavan Nair and Antrix Corporation Managing Director K.R. Sridhar Murthy, Antrix signed a contract with Devas Multimedia to provide satellite-based broadband services by leasing S-band transponder capacity on the GSAT-6 and GSAT-6A satellites. At the time, the Minister of Space was the-then Prime Minister Dr. Manmohan Singh, while Dayanidhi Maran held the Communications & IT portfolio.

However, by 2011, the deal was scrapped amid concerns about spectrum undervaluation and potential security risks. ISRO Chairman K. Radhakrishnan and Communications & IT Minister Kapil Sibal were in office when the cancellation decision was made. The termination coincided with India's 2G telecom spectrum controversy, raising questions about transparency and policy inconsistencies.

Devas Multimedia was founded in 2004 and was led by Dr. M.G. Chandrasekhar, a former Scientific Secretary at ISRO. Another key founder associated with the company is Ramachandran Viswanathan. The company was based in Bangalore, India, and aimed to provide satellite broadband services across the country.

Devas also attracted investment from Deutsche Telekom, which acquired a 17% stake for about $75 million. 

Legal Battle in US Courts

Following the Antrix-Devas deal cancellation, Devas Multimedia initiated arbitration, claiming that India's decision was unjustified and amounted to contractual breach. The National Company Law Tribunal (NCLT) later ordered Devas’ liquidation in 2021, a ruling upheld by the Indian Supreme Court. Yet, Devas pursued enforcement of the arbitral award across multiple jurisdictions.

In 2023, the Ninth Circuit Court of Appeals dismissed the lawsuit, asserting that Antrix lacked sufficient ties to the US under the Foreign Sovereign Immunities Act (FSIA). However, in a unanimous 2025 Supreme Court ruling, US justices determined that jurisdiction exists under FSIA when an immunity exception applies and service is proper—allowing the case to proceed.

Implications for India’s Arbitration Strategy

The ruling could shape how India navigates international arbitration, influencing future disputes involving state-owned enterprises and sovereign immunity claims. With global companies increasingly challenging Indian regulatory decisions in foreign courts, the case underscores India's need for a more cohesive legal strategy to protect its interests on the international stage.

As India moves forward, the lawsuit raises critical questions about how sovereign decisions intersect with global business agreements —and whether government-backed enterprises can shield themselves from costly legal battles abroad.

Bangaluru Startup To Get $1.2 Billion in Compensation from ISRO's Commercial Arm

Devas Multimedia, a Bengaluru-based startup, will get US$1.2 billion in compensation as a federal court in the United States has asked Antrix Corporation, the commercial arm of ISRO, to pay Devas Multimedia the compensation of this amount for canceling a January 2005 deal to build and launch two satellites to provide multimedia services via the space band spectrum.

Incorporated in 2004, by a few former ISRO officials and US businessmen, Devas Multimedia is involved in motion picture, radio, television and other entertainment activities, according to Registrar of Companies (RoC), Bangalore.

In an agreement dated in January 2005, Antrix agreed to build, launch and operate two satellites and to make available 70 MHz of S-band spectrum to Devas, which the latter planned to use to offer hybrid satellite and terrestrial communication services throughout India.

Later in February 2011 the agreement was terminated by Antrix. Devas then approached various legal avenues in India over several years after Antrix cancelled the deal. This included the Supreme Court, which directed for a tribunal. In his order dated October 27, Judge Thomas S Zilly, US District Judge, Western District of Washington, Seattle, ruled that Antrix Corporation pay a compensation of USD 562.5 million to Devas Multimedia Corporation and the related interest rate amounting to a total of USD 1.2 billion.

The US federal court for the Western District of Washington on Tuesday confirmed an arbitration award made by the International Court of Commerce on September 14, 2015, in favor of Devas Multimedia -- on account of the government cancelling the 2005 satellite deal in February 2011 by citing the need for usage of the S-band spectrum for security communications.

The agreement was terminated by Antrix in February 2011. Over the next several years, Devas approached various legal avenues in India. This included the Supreme Court, which directed for a tribunal. In his order dated October 27, Judge Thomas S Zilly, US District Judge, Western District of Washington, Seattle, ruled that Antrix Corporation pay a compensation of USD 562.5 million to Devas Multimedia Corporation and the related interest rate amounting to a total of USD 1.2 billion.

According to the RoC, Bengaluru, Devas Multimedia has seven directors of Devas Multimedia Private Limited are Ramachandran Viswanathan, Arun Kumar Gupta, Lawrence Thomas Babbio Junior, Rajendra Singh, Chandrasekhar Gangarudraiah Muthugadahal, Brijendra Kumar Syngal, Gary Michael Parsons.