Even as the Enforcement Directorate is investigating the financial transactions of Devas Multimedia in connection with its controversial S-band spectrum deal with Antrix, commercial arm of Indian Space Research Organisation (ISRO), the company's chairman stepped down on Friday.
A press release from Devas said M.G. Chandrasekhar had submitted his resignation and stepped down as the Chairman of the Board of Directors, although he would continue to serve as a Director.
“The Board, with regret, has accepted Dr. Chandrasekhar's resignation and noted its appreciation for the able leadership rendered during his tenure as Chairman,” the statement said.
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Dr. Chandrasekhar will be replaced by Lawrence T. Babbio, former Vice Chairman and President of U.S. telecommunications operator Verizon. Mr. Babbio is a senior adviser to Warburg Pincus, a global private equity firm that has invested more than $40 billion, including in Bharti Televentures.
Under the Antrix-Devas contract signed in 2005, ISRO was to build two satellites GSat 6 and 6A for the Bangalore-based company, which would have been allowed the use of 70 MHz of S-band spectrum over a 20-year period. The Centre scrapped the deal in February 2011, following an investigation into irregularities in the agreement that was allegedly signed without a competitive bidding process.