Today, the Financial Times covers two significant victories for Devas shareholders this week, in the effort to secure the $1.3 billion in arbitration judgements owed by India.
On Saturday, a Canadian court upheld an order to allow Devas shareholders to garnish 50% of Air India revenues flowing to the International Air Transport Association (IATA), which had totaled several million and continue to add up.
The FT also reveals that Devas shareholders have in effect seized an Indian government property in Paris, which serves as the residence for the Deputy Chief of Mission at the Indian Embassy. The details of the Paris apartment, situated in the upmarket 16th arrondissement and worth over €3.8 million, can be viewed online here.
Together, these represent a major step forward for Devas shareholders, and send a clear message to the India government that Devas will pursue the Indian government all over the world.
Jay Newman, senior advisor to Devas shareholders, was quoted in the FT on the importance of this pivotal moment noting, “India has assets like this all over the world. This is just the beginning. We’re planning many more seizures.”
The Canadian court noted the Indian government’s “mind-boggling” attempts to invent excuses for refusing to pay Devas shareholders go “way beyond a legitimate contestation of the validity” of the arbitration awards.
These efforts have included almost everything in its power, both domestically and internationally, to deny, defy and delay payment. To this end, the government has even expropriated Devas itself inside India, and has appointed Modi-linked apparatchiks to oversee the process.
For all India’s efforts, the events of this week demonstrate that attachments can, and will, be confirmed regardless of the Indian government’s sophistry. As Jay Newman summarizes, “We’ve seen this show before. It never affected our ability to pursue assets and cash flows outside the country.”