Former Communications and IT Minister Dayanidhi Maran, his brother Kalanidhi Maran, the principal promoter of the media group, and the company Sun TV Network Ltd are embroiled in the Aircel-Maxis case that the CBI is investigating. (Source: PTI photo/file)
The Home Ministry on Friday denied security clearance to Sun TV Network Ltd that runs 33 satellite TV channels. In March, clearance had been denied to four companies of the group that runs 45 FM radio channels. It is now for Information & Broadcasting Minister Arun Jaitley to persuade Home Minister Rajnath Singh to reconsider or review the decision. If Singh does not, I&B will have to issue an order asking Sun TV Network Ltd to stop broadcasting its TV and FM channels.
At stake are numerous jobs. Up for debate will be the government’s wisdom in banning operations of a media house for economic offences. Sun TV is the market leader in South India, and its radio channels under the brand name Suryan FM in Tamil Nadu and Red FM in other cities, are among India’s top FM stations. A withdrawal of licences can potentially jeopardise the auctions of FM Phase III, which was cleared by the union Cabinet back in January. The MHA decision led to the Sun TV stock crashing 22 per cent on Monday.
[related-post]
Why did the Home Ministry deny security clearance to Sun?
For three reasons. Former Communications and IT Minister Dayanidhi Maran, his brother Kalanidhi Maran, the principal promoter of the media group, and the company Sun TV Network Ltd are embroiled in the Aircel-Maxis case that the CBI is investigating. The allegations relate to illegal gratification to the tune of Rs 540 crore. Brothers Kalanidhi and Dayanidhi are sons of former Commerce and Industry Minister, the late Murasoli Maran, a nephew of DMK chief M Karunanidhi.
Story continues below this ad
Two, the Enforcement Directorate is investigating a case under the Prevention of Money Laundering Act against the brothers for alleged laundering of funds to the tune of Rs 550 crore.
The third reason cited by the MHA relates to alleged unlawful gains of over Rs 400 crore in a case that involved an illegal telephone exchange on the premises of Sun TV.
Are Sun’s operations a threat to India’s national security?
All these are economic offences that, the MHA claims, endanger the country’s economic security. But it fails to make a convincing argument. There is more than one media house against which either the ED or CBI has acted in the past, and continues to do so now. The lack of consistency in the MHA’s decision, and its vagueness over what constitutes “economic or national security”, are likely to be contested in court.
Can I&B ignore the Home Ministry and give the go-ahead to Sun?
I&B would normally go by Home’s advice and order the shutting down of the channels and stations. But it is wiser now following the decision of the Madras High Court on a case involving the Marans’ cable distribution business last year. I&B had ordered closure based on Home’s denial of security clearance to Kal, but the court had struck it down, and remarked that the two ministries ought to have served the company a showcause notice before acting. In a letter to Singh in April, Jaitley had said that a stricture by the courts could bring embarrassment. I&B, in fact, plans to ask Home whether the Marans’ newspapers, Dinakaran and Murasoli, can continue to be published. What has puzzled I&B is Home’s advice that its reasons for denying security clearance should not be communicated to the company. I&B is likely to write back, asking what reasons it should then cite. For the record, a government spokesperson said on Monday that consultations were on.
4 min read
Former Communications and IT Minister Dayanidhi Maran, his brother Kalanidhi Maran, the principal promoter of the media group, and the company Sun TV Network Ltd are embroiled in the Aircel-Maxis case that the CBI is investigating. (Source: PTI photo/file)
