Prime Minister Manmohan Singh was recommended by the Space Commission in July 2010, to withdraw the contract with Devas Multimedia Private Limited and consultations were held with the Law Ministry in this regard.

But when PM announces the end of Antrix-Devas deal the company boosted into anger and mulling to take legal action against the government.

In January 2005, a deal was signed between Antrix Corporation, the commercial arm of Indian Space Research Organisation and Bangalore-based firm Devas Multimedia Private Limited for lease of 90% transponders in two satellites to be built by ISR.

It has been reported by media that this deal would result in loss of over Rs 2 lakh crore to the national exchequer.

Prime minister denies all the talks with Devas on the controversial deal and said that it has been decided that government would take a sovereign policy decision.

PM further said that his office received a Cabinet note in November 2010 from the Department of Space for termination of the contract with Devas. Devas on receiving the final termination call from the government decided to, take strong legal actions to protect its rights and interests.