DEVAS SCANDAL – FACTS OF A SCAM
(This note is in circulation on email/internet sourced to ISRO employees association)
1. DEVAS does not own either the spectrum, the two satellites or the user terminal technology. It is only an agent for foreign multinationals. It paid Rs.1000 Crores, so far, for two custom-built satellites
but not a dime for Spectrum!!! What a sweet deal. Most of the DEVAS employees, Board Directors and Advisers are ex ISRO personnel who provide the “inside” information not technology.
2. This scam is masterminded by the three former Scientific Secretarys of ISRO – MGChandrasekhar, KRSridharamurthy and A.Bhaskaranaryana. ISRO HQ is too chairman centric and a den of corruption and favouritism. There can be another scam on this.
3. They misrepresented facts to the then Secy, DOS, Additional Secretary and misled the Space Commission and the Union Cabinet . The fact that a very one-sided contract has been signed by ANTRIX with DEVAS was never told to the Space Commission or the Union Cabinet. In fact a copy of the contract was never given to SC and Cabinet. The so called approvals were obtained from SC and Cabinet for the satellite GSAT-6 and more recently 6A without disclosing that these satellites have been contracted out to DEVAS.
4. No declaration of interest was put out on the ANTRIX website requesting bids from other interested parties before signing the Agreement.
5. emerging requirements of S-band spectrum by Strategic Government organisations (50 MHz) and societal needs ignored;
6. the Agreement raises serious national security issues due to the liberty provided to the private party to co-opt any partner without clearance of ANTRIX
7. The AGREEMENT violates INSAT Co-ordination Committee (ICC) guidelines of ‘Non-exclusiveness’.
8. It violates Govt.’s policy as contained in the Recommendations of TRAI dated 28 Aug.2007 that for any terrestrial transmission, except for 800,900,1800 MHz band, the spectrum allocation has to be done through an auction and,
9. the ANTRIX-DEVAS contract, contravenes the existing policy framework of the Government as part of this spectrum was co-ordinated for strategic use and is not to be shared with commercial applications to a private party Terrestrial transmission is not permitted in this part of S band as per TRAI regulation.
10. SECRETARY DOS is Deliberately not proceeding on the Directives of SC for the past seven months issued vide minutes of the SC mtg on July 2,2010 as pressures from former Chairmen, ISRO are overwhelming. Dr.Kasturirangan is worried about his clean image getting dented. Prof. U.R .Rao’ daughter works for DEVAS!!
11. The sweet deal between ANTRIX and DEVAS was considered to be similar to earlier INTELSAT contract but is not. This agreement allows DEVAS to sub-lease, assign or sell the capacity without any approvals of ANTRIX which would give rise to serious security concerns; violates INSAT Coordination Committee (ICC) guidelines of ‘Non-exclusiveness’ in leasing capacity , violates transparency, no technology neutrality, non-information of the Agreement to the Cabinet and the Space Commission, non-commercial viability for ANTRIX, terms of contract being biased against ANTRIX’s interest. (The fact of the contract already having been signed in Jan.2005 was not informed to the Union Cabinet while seeking clearance for financial sanction to build GSAT-6 satellite though the notes to the Union Cabinet were sent subsequently on Nov.17,2005) ; The total payment to be made by DEVAS to ANTRIX is not commensurate with the cost of the satellite and the normal profit projections of a commercial corporation. severe penalty clauses to be borne by ANTRIX for delayed delivery of the spacecraft.(Any body can check that these are true by referring to the Agreement)
12. DoT, Min,of Law and Justice have favoured cancellation of the contract.
13. The Agreement was never discussed in TAG or ICC. as it was considered “Commercially Confidential.” AGREEMENT copy was denied to Hindu under RTI?? Can you believe this in this age?
14. DOT/MOC vide their note dated 28.07.2010 further stated: “… that terrestrial component of the BSS frequencies should also be given similar treatment as in the case of 3G and BWA spectrum with regard to pricing, and, auction mechanism should be adopted for fair spectrum allocations”.
15 From observations above it is seen that the ANTRIX-DEVAS contract has to be terminated.
16. What happened between Jan.2005 and July 2010?
DEVAS was busy selling the capacity to foreign vendors, getting FIPB clearances, attempting trials without witnesses, waiting for European technology to mature which they could sell as their own indigenous technology. In short attempting bigger frauds and covering their tract as the satellites were getting ready.
17. Who wanted this spectrum?
All 4G vendors and LTE operators. They still want it.
18. Does DEVAS have a S-DMB license now?
No. Though the AGREEMENT is for delivery of S-DMB service, DEVAS does not have an operating license. Why? Because MI&B clearance is also required and DEVAS does not know or wants to know how to get S-DMB license. They hope to get it from the powers in Delhi on a platter.
19. The S-band spectrum has been auctioned in the World since 2000. A report is enclosed. UK sold 60 MHZ for 22.5 billion GBP.
20. AIR operates its services in this band and recently DD has plans to use this band for S-DMB which should take priority. Why are they not doing it then? Simply because there has been no meeting of the Inter-ministerial group for the past 2 years. The Govt. processes of checks and balances has been completely suspended. Who did it? The present Chairman ISRO to keep the lid firmly on the scam.
ends
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