India’s space agency ISRO, has lost a major Attribution Case and can now face a fine up to $1 billion dollars in damages.
India in 2011 had canceled a deal involving two satellites and the spectrum they were to use.
The cancellation is now coming up to haunt them as the decision can now damage India’s reputation with international investors.
The case was filed in 2015 by Devas Multimedia at the International Tribunal in the Hague. The contract was canceled by Antrix back in 2011 for a contract that was signed in 2005.
Antrix is the commercial arm of the state-run Indian Space and Research Organisation.
In its contract Antrix had agreed to lease long-term two satellites operating in the S-band spectrum, but in 2011 decided to cancel the contract.
The Manmohan Singh government, who were in power at the time, had said that they had not signed off on ISRO’s plans to build the satellites.
The International Tribunal on July 26, 2016 ruled that by doing so, the government acted unfairly and thus caused inordinate losses to investors.