India is again in the limelight of investor-state dispute settlement (ISDS). An international tribunal has penalised the country earlier this week with a monetary compensation estimated at one billion dollars.
India has lost its arbitration case in an international tribunal against the Bengaluru-based Devas Multimedia Private Ltd. for cancelling the space/satellite contract with the government-owned Antrix Corporation.
As part of ongoing initiatives towards restructuring its bilateral investment treaty regime, Indii aims to minimize the possibility of arbitral tribunals interpreting the treaty provisions vastly different from what the contracting parties originally had in mind.
India has written to 47 countries to nullify the existing bilateral investment agreements and ink fresh treaties that will make it mandatory for foreign investors to exhaust local judicial remedies before seeking arbitration.