The Enforcement Directorate has sent a show-cause notice to Bengaluru-based firm Devas Multimedia Pvt Ltd (DMP) alleging Rs. 1,200 crore worth of FEMA violation and wrongful gain made by the company after inking a deal with Antrix Corporation Ltd (ACL), the commercial arm of ISRO, in 2005.
The ED's notice allegedly states that the multimedia firm has received foreign direct investment to the tune of $131.44 mn (Rs. 578.54 crore) over 2006-2010 from investors including Devas Mauritius Ltd, Telecom Devas Mauritius Ltd, Deutsche Telkom Asia Private Ltd, Devas Employees Mauritius Private Ltd and the Indian firm (Antrix) between May 2006 and June 2010.
The beginning of the investigation on the deal dates back to 2011 when a CAG report highlighted "violation of policies and procedures," "undue favours" and "conflict of interest."
Here is the timeline tracing the latest development since 2005:
