India looks to recover $672m penalty
November 12, 2015
By Chris Forrester
Last month an international arbitration court awarded $672 million to Indian satellite facility company Devas. The award was judged as compensation for lost contracts with its then partner the Indian Space Research Organisation (ISRO).
Now it seems the Indian government is seeking any sort of loophole in which to avoid paying the penalty.
One idea reportedly under consideration (according to The Times of India) is to hit Devas with official fines equal to the sum awarded for alleged breaches of India’s tough Foreign Exchange Management Act (FEMA) which covers money laundering rules and regulations.
The news report says that India’s official Enforcement Directorate had investigated Devas and found certain payments that were “in violation” of the FEMA rules.