Although it has been more than three weeks since the Ministry of Home Affairs (MHA) refused to provide security clearances to 33 channels of the Sun Network, neither the MHA nor the Ministry of Information and Broadcasting have sent a formal communication on the decision. Several letters from the Sun Network to the Ministry have also remained unanswered.
“There has been no formal communication from the Ministry till date. We read reports in newspapers that may or may not be true. I am really disillusioned by the way this ordeal has played out in the media glare, creating so much uncertainty on the company’s future and undermining investor confidence,” Mr S. L. Narayanan, Chief Financial Officer of the Sun Group told The Hindu on Tuesday .
Earlier in March, clearance had been denied for the group’s FM radio channels.
“In the process, there is a fear psychosis that has gripped the Sun TV stock and longstanding investors have deserted us,” Mr Narayanan said, adding that the firm could not seek legal relief based on a conjecture.
Stocks plungeFollowing the MHA decision, Sun TV stocks have been bleeding on the Bombay Stock Exchange. From Rs. 453.85 on April 1, the stock fell to Rs. 278.90 on June 8. On Tuesday, the scrip closed marginally higher at Rs. 282.05 on the BSE.
When contacted, sources in the Ministry of Information and Broadcasting said consultations with MHA were underway. “The Minister is a lawyer and understands the implications of the law here. Decisions cannot be taken in a day,” sources said.
On the other hand, President of the Association of Radio Operators India, Anurradha Prasad, has written a letter to Information & Broadcasting Minister Arun Jaitley requesting him to keep the third phase of FM radio expansion in mind before any decision is taken on the Sun TV-operated FM channels. “We have expressed solidarity with Sun on this issue and have written saying the business and commercial interests should not come to harm,” Ms. Prasad said.
