Air India moves to end $1.2 billion US case by Devas
Air India Ltd is seeking to end a case filed by Devas Multimedia Pvt Ltd in a U.S. court, arguing a recent change in ownership of the carrier prevents demands over recovery of arbitration awards. The representatives of Devas said the company will initiate a new arbitration against the Indian government.
Devas Multimedia is a private company formed by former ISRO employees and Venture Capitalists from the USA.
Devas Multimedia is seeking to seize overseas assets of the formerly government-owned flag carrier, which was handed over to Indian conglomerate Tata Sons, saying the national carrier is an alter ego of the Indian government.
Devas demands $1.2 billion from the Indian government after winning three international arbitration awards over a scrapped telecommunications deal with a state-run firm.
As soon as Air India was taken over by the Tata’s, it had filed in the U.S. court, ending years of taxpayer-funded bailouts for the airline. The district court in New York can dismiss and dispose of Devas’ case entirely based on Air India’s request, or it can identify remaining issues in the case if the demand is denied, according to a filing by the airline.
Devas is seeking $1.2 billion from the Government of India and plans to confiscate cash generated from some ticket sales overseas by Air India. The firm has already seized assets worth more than $30 million owned by Air India.
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