It may seem strange that when a government cancels a potentially scandalous contract in order to restrict possible losses to the exchequer, it still ends up paying.
And yet, this exactly what is happening with the continuing fallout of the controversial Antrix-Devas deal. As of Tuesday, two international arbitration mechanisms have ruled against the Indian government over the way it cancelled a contract between Antrix Corporation (ISRO’s commercial arm) and telecommunications firm Devas Multimedia.
The first arbitration outcome – which was conducted by the International Chamber of Commerce – resulted in the Indian government receiving a fine of nearly Rs. 4,500 crore ($672 million) for unilaterally terminating the contract with Devas.… Click here to read the complete article