Providing the much-needed respite to the Sun Group, the Madras High Court on Tuesday dismissed appeals by the Union government, permitting the Group to participate in the e-auction for Phase-III FM radio broadcasting licence.
A Division Bench of Justices Satish K. Agnihotri and K.K. Sasidharan passed the orders on a batch of appeals moved by the Central government challenging a Single Judge’s interim order allowing the Sun Group to participate in the FM auction.
Sun Group, which operates about 45 FM stations across the country, found itself out of the list of applicants eligible to participate in the phase-III auctions issued on July 15, triggering a major controversy. Later, the group was served with a communication stating that the applications of the company were rejected on the ground that the Union Ministry of Home Affairs has denied them security clearance.
The rejection prompted Sun Group to approach the High Court, relying on the provisions of the Indian Telegraph Act and the licence terms and conditions. A single judge of the High Court found that the security clearance was denied only on account of the pendency of various proceedings against the promoters of the group and hence permitted it to participate in the auction, subject to the final out come of the petition.
On August 20, the Centre moved an appeal, alleging that the single judge had erred in issuing the interim direction permitting Sun TV Network, KAL Radio and South Asia FM to participate in the e-auction.
When the appeals were taken up for pronouncing orders on Tuesday, the Bench said, “In view of the legal position that the accused is presumed to be innocent, unless the guilt is proved beyond probabilities, the single judge was correct in allowing the Sun Group to participate.”
The Bench declined the request made by the Additional Solicitor General to call for the petitions and decide the issue once for all.
