“CORPORATE FRAUD WITH SPECIAL REFERENCE TO DEVAS-ANTRIX SAGA: A CRITICAL ANALYSIS”

AUTHOR – ASHUTOSH  RATHORE* & DR. JYOTSNA SINGH**

* LL.M (BUSINESS LAW) SCHOLAR AT AMITY LAW SCHOOL, AMITY UNIVERSITY UTTAR PRADESH LUCKNOW CAMPUS

** ASSISTANT PROFESSOR  AMITY LAW SCHOOL, AMITY UNIVERSITY UTTAR PRADESH LUCKNOW CAMPUS

BEST CITATION – ASHUTOSH  RATHORE* & DR. JYOTSNA SINGH, “CORPORATE FRAUD WITH SPECIAL REFERENCE TO DEVAS-ANTRIX SAGA: A CRITICAL ANALYSIS” INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 538-548, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

Corporate frauds have far-reaching implications that go beyond financial losses, shaking the very foundations of governance, accountability, and public trust in institutions. Among the notable corporate controversies in India, the Devas-Antrix agreement stands out as a significant case involving high-level decision-making, regulatory loopholes, and international ramifications. This case is particularly important due to the involvement of a government-owned enterprise—Antrix Corporation, the commercial arm of ISRO—and its agreement with Devas Multimedia Private Limited, a company backed by foreign investors.

The deal, which involved the leasing of rare and strategically sensitive S-band satellite spectrum, was later annulled by the Government of India citing national interest. However, investigations revealed substantial procedural irregularities, undervaluation of public resources, and elements of deception—indicating that the agreement was entered into with fraudulent intent.

This paper aims to provide a critical and multi-dimensional analysis of the Devas-Antrix episode through legal, ethical, economic, and regulatory perspectives. It delves into how the fraudulent aspects of the deal came to light, evaluates the roles played by various domestic agencies such as the CBI, ED, NCLT, and judiciary, and examines the international arbitration proceedings initiated by Devas investors under bilateral investment treaties (BITs).

The study also uncovers institutional shortcomings in the governance of public sector undertakings and the challenges India faces in balancing foreign investor obligations with sovereign decision-making. It highlights how judicial interpretation, legislative inaction, and lack of oversight created fertile ground for corporate abuse, and proposes comprehensive regulatory reforms aimed at preventing such occurrences in the future.

Keywords: Corporate Fraud, Devas-Antrix Deal, ISRO, Antrix Corporation, Governance Failures, Public Sector Accountability, International Arbitration, Bilateral Investment Treaties (BIT), Supreme Court of India, CBI, Economic Offences.