Madras high court set aside govt order against Sun TV FM radio licences

Chennai : The Madras high court on Tuesday set aside central government’s order dated 15th July denying security clearance for the group companies, ending the uncertainty over FM radio channel licences won by Sun TV Network Ltd.

The Sun TV Network group companies were  not allowed to participate in the phase III FM radio auction due to denial of security clearance.

On Tuesday, trashing the submission that former Union minister Dayanidhi Maran and his elder brother controlling Sun TV Network Kalanidhi Maran were named in the Rs 549-crore Aircel-Maxis case, Justice M Duraiswamy said, “The petitioner-companies have been functioning since 2005 without there being any allegation regarding their functioning resulting in any security concerns. They were incorporated more than 10 years ago, even before the alleged offences were committed and till date have not come to any adverse remarks by any authority.”

Stating that the Delhi high court had already passed an order in the matter and that it had been confirmed by the Supreme Court as well, the judge said the decision would squarely apply to the facts and circumstances of the present case as well.

Pointing out that the companies existed from 2005, whereas cases against the Marans were registered only in 2011, he said, “Therefore, the petitioner-companies were not floated to camouflage any wrong in order to pierce the corporate veil.”

Earlier, The Union home ministry had denied the company security clearance to participate in FM auctions citing the pending cases before CBI and ED. The Madras high court, however, passed interim orders in favour of Marans, directed them to resubmit the bank guarantee and participate in FM radio stations Phase III auctions. The bid was ordered to be kept in a sealed cover. The court made it clear that the participation of these companies in the e-auction would subject to the result of the writ petitions.

Since, the case have been decided in favour of Sun TV Group, the judge asked authorities to declare the bid results. “The petitioner-companies are entitled to move to phase III auction for the FM radio stations at Chennai, Coimbatore, Tirunelveli and Visakhapatnam by entering into Grant of Permission Agreement (GoPA). Since this court is setting aside the impugned orders, the details of bids made by the applicants which were produced in the sealed cover is returned. The authorities are directed to announce the name of the successful bidders subject to the other conditions being fulfilled by the participants.”