Editing Telecommunications in India (section)

==S-band spectrum scam==

In India, [[electromagnetic spectrum]], being a scarce resource for wireless communication, is auctioned by the Government of India to telecom companies for use. As an example of its value, in 2010, 20 [[Hertz]] of [[3G]] spectrum was [[Indian Telecom Spectrum Auction|auctioned]] for {{INRConvert|677|b}}. This part of the spectrum is allocated for terrestrial communication (cell phones). However, in January 2005, Antrix Corporation (commercial arm of ISRO) signed an agreement with Devas Multimedia (a private company formed by former ISRO employees and venture capitalists from USA) for lease of [[S band]] transponders (amounting to 70&nbsp;MHz of spectrum) on two ISRO satellites (GSAT 6 and GSAT 6A) for a price of {{INRConvert|14|b}}, to be paid over a period of 12 years. The spectrum used in these satellites (2500&nbsp;MHz and above) is allocated by the [[International Telecommunication Union]] specifically for satellite-based communication in India. Hypothetically, if the spectrum allocation is changed for utilisation for terrestrial transmission and if this 70&nbsp;MHz of spectrum were sold at the 2010 auction price of the 3G spectrum, its value would have been over {{INRConvert|2000|b}}. This was a hypothetical situation. However, the [[Comptroller and Auditor General of India]] considered this hypothetical situation and estimated the difference between the prices as a loss to the Indian Government.<ref name="Thakur, Pradeep">{{cite news|url=https://timesofindia.indiatimes.com/india/Another-spectrum-scam-hits-govt-this-time-from-ISRO/articleshow/7445139.cms|title=Another spectrum scam hits govt, this time from ISRO|author=Thakur|first=Pradeep|date=8 February 2011|work=[[The Times of India]]|access-date=23 January 2018|location=[[New Delhi]]|archive-date=27 July 2019|archive-url=https://web.archive.org/web/20190727213455/https://timesofindia.indiatimes.com/india/Another-spectrum-scam-hits-govt-this-time-from-ISRO/articleshow/7445139.cms|url-status=live}}</ref><ref name="Behind the S-band spectrum scandal">{{cite news | url=http://www.thehindu.com/opinion/editorial/behind-the-sband-spectrum-scandal/article1200374.ece | title=Behind the S-band spectrum scandal | work=The Hindu | date=28 September 2011 | access-date=6 February 2015 | archive-date=19 February 2014 | archive-url=https://web.archive.org/web/20140219053426/http://www.thehindu.com/opinion/editorial/behind-the-sband-spectrum-scandal/article1200374.ece | url-status=live }}</ref>

There were lapses on implementing Government of India procedures. Antrix/ISRO had allocated the capacity of the above two satellites to Devas Multimedia on an exclusive basis, while rules said it should always be non-exclusive. The [[Union Council of Ministers]] was misinformed in November 2005 that several service providers were interested in using satellite capacity, while the Devas deal was already signed. Also, the Space Commission was kept in the dark while taking approval for the second satellite (its cost was diluted so that Cabinet approval was not needed). ISRO committed to spending {{INRConvert|7.66|b}} of public money on building, launching, and operating two satellites that were leased out for Devas.{{citation needed|date=June 2020}}

In late 2009, some ISRO insiders exposed information about the Devas-Antrix deal,<ref name="Behind the S-band spectrum scandal"/><ref>{{cite web|url=http://newsroom24x7.com/2015/03/20/2862/antrix-devas-news-lalit-shastri/#main|title=antrix-devas-news-lalit-shastri|date=20 March 2015|publisher=Newsroom24x7|access-date=24 May 2016|archive-date=19 May 2015|archive-url=https://web.archive.org/web/20150519214523/http://newsroom24x7.com/2015/03/20/2862/antrix-devas-news-lalit-shastri/#main|url-status=live}}</ref> and the ensuing investigations resulted in the deal being annulled. [[G. Madhavan Nair]] (ISRO Chairperson when the agreement was signed) was barred from holding any post under the Department of Space. Some former scientists were found guilty of "acts of commission" or "acts of omission". Devas and Deutsche Telekom demanded US$2&nbsp;billion and US$1&nbsp;billion, respectively, in damages.<ref>{{cite web | url=http://www.newindianexpress.com/nation/Antrix-Devas-and-the-second-generation-scam/2013/08/22/article1745659.ece | title=Antrix Devas and the second generation scam | work=The New Indian Express | date=22 August 2013 | access-date=6 February 2015 | author=Jethmalani, Ram | location=New Delhi | archive-date=6 February 2015 | archive-url=https://web.archive.org/web/20150206055725/http://www.newindianexpress.com/nation/Antrix-Devas-and-the-second-generation-scam/2013/08/22/article1745659.ece | url-status=dead }}</ref>

The [[Central Bureau of Investigation]] concluded investigations into the Antrix-Devas scam and registered a case against the accused in the Antrix-Devas deal under Section 120-B, besides Section 420 of IPC and Section 13(2) read with 13(1)(d) of PC Act, 1988 on 18 March 2015 against the then executive director of Antrix Corporation, two officials of USA-based company, Bangalore based private multimedia company, and other unknown officials of Antrix Corporation or Department of Space.<ref>{{cite news|title=CBI registers case in the huge Antrix-Devas scam|url=http://newsroom24x7.com/2015/03/18/cbi-registers-case-in-the-huge-antrix-devas-scam/|access-date=16 May 2015|publisher=Newsroom24x7.com|archive-date=18 May 2015|archive-url=https://web.archive.org/web/20150518104746/http://newsroom24x7.com/2015/03/18/cbi-registers-case-in-the-huge-antrix-devas-scam/|url-status=live}}</ref><ref>{{cite web|url=http://newsroom24x7.com/2015/03/20/antrix-devas-agreement-national-security-and-cbi/|title=Antrix-Devas Agreement, national security, and CBI|date=20 March 2015|publisher=Newsroom24x7|access-date=24 May 2016|archive-date=3 May 2016|archive-url=https://web.archive.org/web/20160503054604/https://newsroom24x7.com/2015/03/20/antrix-devas-agreement-national-security-and-cbi/|url-status=live}}</ref>

Devas Multimedia started arbitration proceedings against Antrix in June 2011. In September 2015, the International Court of Arbitration of the [[International Chamber of Commerce]] ruled in favour of Devas, and directed Antrix to pay US$672&nbsp;million (Rs 44.35&nbsp;billion) in damages to Devas.<ref>{{cite news | url=http://economictimes.indiatimes.com/news/science/isros-antrix-to-pay-rs-4432-crore-damages-to-devas-for-unlawfully-cancelling-contract/articleshow/49158235.cms | title=ISRO's Antrix to pay Rs 4,432 crore damages to Devas for unlawfully cancelling contract | date=30 September 2015 | work=The Economic Times | access-date=15 December 2015 | archive-date=5 November 2015 | archive-url=https://web.archive.org/web/20151105072143/http://economictimes.indiatimes.com/news/science/isros-antrix-to-pay-rs-4432-crore-damages-to-devas-for-unlawfully-cancelling-contract/articleshow/49158235.cms | url-status=live }}</ref> Antrix opposed the Devas plea for tribunal award in the [[Delhi High Court]].<ref>{{cite news|url=http://indianexpress.com/article/india/india-news-india/antrix-opposes-devas-plea-over-tribunal-award-in-hc/|title=Antrix opposes Devas plea over tribunal award in HC|author=Mathur|first=Aneesha|date=10 October 2015|work=[[The Indian Express]]|access-date=23 January 2018|location=[[New Delhi]]|archive-date=22 December 2015|archive-url=https://web.archive.org/web/20151222153015/http://indianexpress.com/article/india/india-news-india/antrix-opposes-devas-plea-over-tribunal-award-in-hc/|url-status=live}}</ref>{{update inline|date=December 2018}}