Maran Bros Feud Hits Sun TV: Dayanidhi Seeks 2003 Shareholding Restoration, Stock Falls

Chennai: Shares of Sun TV Network plunged upto 5% on the BSE on Thursday after a long-simmering feud within the powerful Maran family spilled into public view, shaking investor confidence in one of India’s leading media companies.

The decline came after Moneycontrol broke the story that former Union Minister and DMK MP Dayanidhi Maran has sent a legal notice to his elder brother, Kalanithi Maran—the billionaire Chairman and controlling shareholder of Sun TV Network—accusing him and his wife Kaveri Kalanithi of fraud, cheating, and money laundering.

The legal notice, dated June 10, 2025, has also been served to six others and demands the restoration of Sun TV’s shareholding structure to its original state as of 2003. The notice was issued by K Suresh of Law Dharma, a Chennai-based litigation support firm.

Key Allegations by Dayanidhi Maran:

1. Fraudulent Takeover Amid Family Crisis:

   • Media reports say Dayanidhi alleges the disputed share transactions occurred between late 2002 and November 2003, when their father, former Union Minister Murasoli Maran, was in a coma and on life support.

   • Following his death in November 2003, shares were allegedly transferred to their mother, Mallika Maran, without essential documents such as a death certificate or legal heir certificate—both of which were only issued later.

   • This maneuver, the notice claims, was used to facilitate the eventual transfer of shares to Kalanithi Maran.

2. Questionable Share Allotment to Gain Control:

   • One of the most serious charges centres around a transaction on 15 September 2003, when Kalanithi Maran allegedly allotted 12 lakh equity shares to himself at a face value of ₹10 each.

   • According to the notice, the fair market value of each share was between ₹2,500 and ₹3,000 at the time. Before this, Kalanithi reportedly held no stake in the company.

   • Post-allotment, he emerged as the majority stakeholder, reducing the family’s original 50:50 ownership to just 20% each. The company was financially healthy at the time, with no legitimate reason to raise capital, making the share issue, according to the notice, “an illegal act of criminal breach of trust.”

3. Money Laundering and Proceeds of Crime:

   • The differential between the ₹1.2 crore paid for the shares and their actual estimated worth of ₹3,500 crore is described as “proceeds of crime” in the notice.

   • These funds were allegedly funnelled into acquiring a suite of high-value assets and businesses including Sun Direct TV, Kal Radios, Kal Airways, Kal Publications, Sunrisers Hyderabad, South Asian FM, Sun Pictures, and even cricket franchises in the UK and South Africa.

4. Dividends from Disputed Shares:

   • The notice claims Kalanithi and Kaveri Maran have received dividends worth ₹5,926 crore in 2023 and ₹455 crore in 2024, derived from the allegedly fraudulently acquired shareholding.

5. False Declarations in IPO Prospectus:

   • The notice further accuses Sun TV of misleading investors in its Red Herring Prospectus (RHP) filed in 2006 by falsely stating that ₹10.64 crore had been paid to Mallika Maran in dividends by December 2005—an amount which, Dayanidhi alleges, was never actually paid.

6. Ignored Prior Legal Notice:

   • A similar notice sent in October 2024 reportedly received only a vague reply, prompting the latest, more detailed legal escalation.

Demands and Potential Legal Action:

• The legal notice calls for the entire shareholding structure of Sun TV Network Limited and affiliated entities to be restored to its pre-2003 state.

• It also demands that all monetary gains, dividends, assets, and income received by Kalanithi and Kaveri Maran since 2003 be returned to M.K. Dayalu (wife of former Tamil Nadu CM M. Karunanidhi) and the legal heirs of SN Maran.

• If the demands are not met, Dayanidhi Maran has warned of initiating civil, criminal, regulatory, and enforcement action, including a potential probe by the Serious Fraud Investigation Office (SFIO).

Market Impact and Background:

The public revelation of the fraternal clash has had an immediate financial impact, with Sun TV Network’s shares falling sharply on concerns over legal risk, potential enforcement action, and reputational damage. Kalanithi Maran currently holds a 75% stake in the listed company and has an estimated net worth of $2.9 billion.

Moneycontrol, which reviewed a copy of the legal notice, has reached out to both Maran brothers for comment. Sun TV and lawyer K Suresh have yet to respond.

This is not the first time internal family disagreements have surfaced. The notice revives earlier disputes between the Maran and Karunanidhi families, including allegations that MK Dayalu was underpaid during Sun TV’s IPO-era stake buyout.