After Cairn, Devas sues Air India to recover $1.5b award

Shareholders in Devas Multimedia have sued Air India in an effort to recover sums Devas won in arbitration awards against the Indian government and seize its flagship carrier’s foreign assets, according to a US District Court filing. The shareholders said Devas and its affiliates were owed more than $1.5b by the Indian government. Describing state-owned Air India as the “alter ego” of India, three Devas investors - Devas (Mauritius) Ltd, Telcom Devas Mauritius Ltd and Devas Employees Mauritius Pvt Ltd - said in the petition to the US District Court for Southern District of New York reviewed by Reuters the airline should be held liable for the country’s debts and obligations. The move comes after Cairn Energy sued Air India last month to enforce a $1.2b arbitration award that it won in a tax dispute against India, further complicating the state’s efforts to sell the loss-making airline. That case is ongoing.<br/>