India’s Department of Space has has said that the Comptroller and Auditor General (CAG) has made preliminary inquiries into an agreement between the Indian Space Research Organisation (ISRO)’s commercial arm Antrix, and Devas Multimedia, an ISP founded by MG Chandrasekhar, a former ISRO exec, and backed by Deutsche Telekom, Columbia Capital and Telcom Ventures.

Deutsche Telekom had picked up 17% stake in Devas for $75 million in 2008. Devas also has a strategic partnership with Deutsche Telekom AG (DT), for network and terminal design, business development and vendor evaluations, and design and implementation of Devas’ business and operational systems.

The CAG has said that the Department of Space is itself being audited, and preliminary queries have been raised in the matter, and that the agreement with Devas is already being reviewed by the Department of Space.

This follows a report yesterday from the Hindu BusinessLine which said that that an agreement to launch two satellites for Devas gives it use of 70Mhz of scarce s-band spectrum for 20 years, which it is free to lease. According to Devas’ website, the S-band satellites have high power, which will allow it to be received by portable devices, and provide continuous coverage in all areas of the country, allowing the delivery of multimedia, data, and two-way communication services to consumers, government agencies and enterprise customers, on multimedia terminals, laptops (with PC modems) etc. It has apparently been in talks with Indian Railways for Wifi on trains.

Businessline has more details from the contract, which is not available on the websites of Antrix or ISRO.

Our coverage of Devas:
Devas Multimedia-ISRO Mobile TV / Broadband Spectrum Deal Under The Scanner: Report

– Devas Multimedia’s request to introduce a new foreign collaborator approved
– Deutsche Telekom Eyes Indian ISP Space; Devas Multimedia Looks To Raise Funds
– Mobile TV Co Devas Multimedia To Sell 17 Pc Stake For $75 Million To Deutsche Telekom