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NCLAT upholds NCLT order to wind up Devas Multimedia

Business Line  

The National Company Law Appellate Tribunal (NCLAT) has upheld the National Company Law Tribunal's (NCLT) order to wind up Devas Multimedia Pvt Ltd while declaring that the company was incorporated in a fraudulent manner to carry out unlawful purposes. The NCLAT said Devas did not have the technology, appropriate licences and government approvals to carry out the agreement it did with Antrix Corporation in 2005. Every benefit and every advantage that accrued to Devas under the agreement dated was through “fraud, misrepresentation or suppression”, it ruled. This Tribunal also said it found it rather strange that such a vast and vital agreement between Antrix and Devas in 2005 was allowed to be signed by an article clerk who had no background in science and technology, especially with the functioning of Devas Services, and was given remuneration for signing the agreement. The NCLAT also upheld Antrix's position that shareholders of Devas diverted funds from India.