Sun TV DTH application in trouble

The Direct to Home DTH application of Kalanidhi Maran8217;s Sun TV appears to have run into rough weather with the company affairs ministry finding the proposal not in conformity with the stipulated guidelines.

The information and broadcasting ministry had referred the proposal to the company affairs ministry to check whether it was in line with the guidelines required for a DTH licence, top sources said. As per the eligibility criteria, the government has stipulated that broadcasting companies and/or cable network companies shall not be eligible to collectively own more than 20 per cent of the total equity of an applicant company at any time during the licence period. Similarly, the applicant company should not have more than 20 per cent equity share in a broadcasting and/or cable network company.

Sun TV8217;s DTH venture 8212; Sun Direct TV Pvt Ltd 8212; has Kalanidhi, Union IT and Communication Minister Dayanidhi Maran8217;s brother holding 96.67 per cent with a Rs 145 crore investment in paid-up equity while his wife Kaveri Maran holds 3.33 per cent with an investment of Rs 5 crore. Maran is also CMD of Sun TV Pvt Ltd, in which he holds 60 per cent. This has put his proposal in trouble.

The ministry8217;s objection to Sun8217;s application comes close on the heels of its view that the Star-Tata DTH Venture Space TV was also against DTH norms. 8212;PTI