Sun TV group challenges Centre’s order on FM radio auction

 

A batch of six petitions filed by the company and its shareholders are likely to come up for hearing in a day or two. On July 15, five companies of Kalanithi Maran-promoted Sun TV were not allowed to participate in Phase III auctions as the Information and Broadcasting (I and B)  Ministry rejected their applications.

 

In its petitions, Sun TV sought to quash the I and B ministry’s order dated July 15. As an interim relief, Sun TV sought a direction to the Union Government to permit it to participate in Phase-III auctions by allowing it to resubmit the application dated March 20, 2015.

 

The petitioners said the Telegraph Act did not stipulate security clearance and as per license terms and conditions license can be terminated or denied only when there was default in payment of license fee and breach of any terms and conditions contained in the agreement. The company was not involved in any dispute with regard to the security of the nation. It had not broadcast anything that affected the nation’s security. 

 

They contended that as per clauses 2.2 (b) of the Information Memorandum and clause 3.2 (b) of the Notice inviting application, only a company controlled by a person convicted for an offence involving moral turpitude or money laundering or drug trafficking, terrorist activities or declared as insolvent will not be eligible to apply. Sun TV network’s name was not found  when the list of applicants eligible to participate in Phase-III auctions were published by the Union government. The next day the company was served with a communication giving reasons for the so-called rejection of security clearance for it.  The order had been passed without application of mind.