For cancelling a deal involving two satellites and the spectrum they were to use, India has lost a huge case in international arbitration and may have to pay up to a billion dollars in damages.
The decision could damage India's reputation with international investors. The International Tribunal in The Hague has ruled against the government of India in a case filed by Devas Multimedia. The contract was cancelled in 2005 by Antrix, which is the commercial arm of the state-run Indian Space and Research Organisation.
Devas filed its case at the international court of arbitration in 2015. Antrix had agreed to lease long-term two satellites operating in the S-band spectrum. The contract was cancelled in 2011.
The tribunal has found that doing so, the government acted unfairly, causing inordinate losses to investors in Devas Multimedia.