The National Company Law Tribunal (NCLT) has directed to initiate the liquidation process of Devas Multimedia by allowing the petition filed by Antrix Corporation, a commercial arm of the Indian Space Research Organisation.

The Bengaluru bench of the NCLT has said Devas Multimedia was incorporated with a fraudulent motive to collude and connive with the then officials of Antrix Corporation to get bandwidth from it by entering into an agreement in 2005, which was subsequently cancelled by the Government.

The tribunal also confirmed the appointment of the provisional liquidator by it earlier on January 19 and directed him to take “expeditious steps to liquidate” the company to prevent it from perpetuating its fraudulent activities and abusing the process of law.

“The incorporation of Devas itself was with fraudulent motive and unlawful object to collude and connive with then officials of Antrix and to misuse/abuse process of law, to bring money to India and divert it under dubious methods to foreign countries,” the tribunal noted.

It further observed that the Government of India has “sovereign powers” to frame and change its policies, which includes the termination of the agreement in question.

“In the light of aforesaid facts and circumstances of the case, after duly considering the legal position on the issue and by exercising the power conferred on the tribunal… company petition is allowed by ordering to wind up Devas Multimedia Pvt Ltd,” said a two-member

NCLT bench, comprising members - R Rao Vittanala and Ashutosh Chandra - in its order passed on May 25.

The tribunal has directed the liquidator to submit a report by July 7.

“All persons associated with the affairs of Devas Multimedia, are hereby directed to extend full assistance and co-operation to the said Liquidator to discharge his statutory functions,” the NCLT said while directing Antrix to advertise this winding-up order.