Delay in renewal sinks Sun shares

 

Sun TV had applied to the Information and broadcasting ministry for renewing its broadcasting licence for 10 years. The process required security clearance from the home ministry. 

 

However, home ministry has rejected I&B’s proposal for giving security clearance to 33 television channels Sun TV Network owns, a move that could lead to cancellation of their broadcasting licence. 

 

The decision was taken because of pending criminal cases against Mr Maran and his brother and former union minister Dayanidhi Maran. That said, Sun TV Network later in the day issued a statement saying “no communication has been received by the Company from any ministry and all our channels continue to be on air”.

 

In intra-day trade, the stocks of the network had touched a low of Rs 258, a level last seen three years ago. 

The Maran brothers are facing a Central Bureau of Investigation (CBI) investigation over alleged allotment of 300 high-speed BSNL telephone lines to the residence of former communications and IT minister Dayanidhi Maran in Chennai which were then extended to his brother’s channel. 

 

There are other two other pending cases against  Kalanithi Maran — CBI’s Aircel-Maxis case and an Enforcement Directorate case of money laundering. The Sun TV Network is one of India’s largest TV groups whose TV channels reach more than 95 million households in India.