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Following a ruling from a Canadian court, Devas shareholders said on Monday that they had seized more than $30 million in Airports Authority of India (AAI) funds held by the International Air Transport Association (IATA).

"Additional actions are on the way," Devas said. It's also attempting to seize Air India's assets in order to recoup an arbitration award it obtained against the Indian government.

A spokesperson from Devas said, “Devas’ shareholders have been granted the right to garnish property belonging to Airports Authority of India (AAI) held by the International Air Transport Association (IATA) in Montreal. These actions represent the first fruits of a globally focused effort to attach assets of the Indian government to satisfy the Devas Multimedia’s awards. More than $30 million has been seized to date under the IATA action.” 

According to the statement, the enforcement plan requires IATA to "garnish" air navigation costs, aerodrome charges, and other fees held on behalf of the AAI at its headquarters in Montreal or any of its offices around the world.

“On the intervention of AAI’s counsel in Canada, Commercial Division of the Quebec Superior Court accepted to designate a judge on an urgent basis to hear the applications to quash and stay the seizures/garnishing. The hearing will take place on January 4, at 9.30, a day on which the court would normally be closed due to the holidays,” a top officer in the Ministry of Finance of the Union said.

In 2005, Devas Multimedia and Antrix (ISRO's commercial branch) agreed to build and launch two ISRO satellites, as well as lease the appropriate S-band satellite spectrum to Devas, who would then utilize it to deliver Internet services. However, the UPA administration rejected the contract in February 2011 after a leaked draft CAG audit report revealed a number of possible problems in the agreement.

However, no proof of bribery was discovered, and the Indian government was held guilty of improper termination of the transaction in two international arbitration sessions. Antrix was ordered to pay $672 million to Devas and the Permanent Court of Arbitration under the Indo-Mauritius bilateral investment treaty by October 13, 2020, with interest, by the International Chamber of Commerce (ICC) arbitration court in September 2015.

Only the PCA award is the subject of the Canadian action.

The AAI is India, according to the Superior Court of Quebec, in the sense that it is an instrument of the Indian state, inseparable from India, or India's alter ego. As a result, the AAI's assets can be used to enforce Treaty Awards enforceable in Quebec.

“The action by Devas in Canada is just a start. Additional actions are forthcoming that will underscore that India is an unsafe place to invest. No foreign investor should invest in a country where the government can ignore its contractual obligations and deploy its law enforcement agencies to harass and intimidate investors,” senior adviser to Devas shareholders, Jay Newman said.

“We will pursue the Indian government in courts worldwide to ensure the debts owed to Devas are satisfied. Our action in Canada has resulted in millions of dollars garnished by Devas shareholders, and represents the first fruits of a globally-focused effort to be paid,” According to Matthew D McGill, a partner at Gibson, Dunn & Crutcher and primary counsel for a number of Devas' stockholders,