With the Ministry of Home Affairs refusing to provide security clearance to 33 of its television channels, the Sun TV Network of Kalanithi Maran faced a deep crisis on Monday.
On the Bombay Stock Exchange, shares of the firm plunged 22 per cent and were trading at Rs. 267.30 in the morning reflecting the apprehension of shareholders on the possibility of its broadcasting licence being cancelled and the channels going off air.
Sources said the MHA had rejected a proposal of the Information and Broadcasting Ministry (I&B) to provide the clearance. The decision seems to have been influenced by the criminal cases that the Marans are facing from the CBI and the Enforcement Directorate (ED), the sources added. Last September, the Madras High Court set aside an order of the I&B Ministry cancelling the Multi System Operator licence to Kal Cables, a subsidiary of the Sun TV Network.
Even then, the denial of security clearance by the MHA was based on the fact that the brothers were facing criminal cases.
But the High Court took the view that if the licence were to be cancelled for security reasons as cited in the I&B Ministry’s report, it is the licence of the broadcaster of TV channels that should be cancelled and not that of a distributor.
In the current scenario, the MHA has declined clearance for the TV channels which may become a key point if the media network moves court. When contacted, K. Vijaykumar, Managing Director and Chief Executive Officer of Sun Network, refused comment. “The shares collapsed in the morning and started recovering,” said S.L. Narayanan, Chief Financial Officer of the Sun Group. But the shares closed at Rs. 278.90, against its previous close of Rs. 356.35.
The company also informed the BSE that “no communication” has been received from any Ministry and “all our channels continue to be on air.”
