Maran family's Kal Cables gets relief from Madras HC

Court sets aside I&B Ministry's order cancelling the operators's license

The Madras High Court today set aside the Information & Broadcasting Ministry's order that had asked Maran family-run Kal Cables to cut its signal from midnight today. 

 

After hearing arguments, Justice V Ramasubramanian today said that the company should be given a chance to reply and the Ministry can take action only if it is not satisfied with the reply. 

 

The court said that Kal Cable is only a distributor and not the broadcaster. So if the license has to be cancelled on security reasons, which have been cited by the Ministry, then the broadcaster's license should have been cancelled.

 

On August 20, the Ministry of Information & Broadcasting ordered cancellation of Kal Cables' license and gave it 15 days time to cut its signal. The Home Ministry said in view of denial security clearance by the I&B regular registration cannot be granted to Kal Cables. It added that as per rules permanent registration granted to Kal Cables Pvt Ltd stands cancelled.

 

The MSO operator challenged this order in the Madras High Court, claiming that it was not given an opportunity to present its case.

 

Last week, when the matter came up for hearing, the Ministry of Home Affairs told the Court that it will submit a report on the reasons behind the cancellation. G Rajagopal, the Additional Solicitor General of India, early this week submitted a “confidential” report to the Court. 

 

During the argument early this week, he said, that the Ministry had taken the decision in the interest of national security, economy interest and fare competition. 

 

"We don't know what is in the report (submitted by the Ministry of Home Affairs early this week on why Kal Cables was not given license), we don't know what is the threat proposition,” said Senior Counsel P S Raman, who appeared for Kal Cables.

He said if the clearance was not given because of Marans, then the action is questionable.

Raman argued that Kalanithi Maran had resigned from Kal Cables as Chairman and Director in September 2009, while his younger brother Dayanidhi resigned as the Director when he became Union Minister in 2004. It may be noted, a charge sheet has been filed against both the brothers on Aircel-Marxis deal.

 

"None of the management representatives, board members or shareholders are facing any legal issues, no FIRs are filed, no criminal proceedings or complaints are against them,” said Raman, who said that 75% of the shareholding of Kal Cables is held by Mallika Maran and balance 25% by DK Enterprise, a private entity.

 

He also argued that the company is not running any satellite channel nor is it into transmission. “We (Kal Cables) are doing last mile connectivity,” Raman said.

Kal Cables, a leading multi-service operator (MSO) in Chennai is run by Maran family. While Marans-run DK Enterprises holds around 25% in the company, the rest is held by Former Union Commerce Minister and DMK Leader Murasoli Maran's wife Mallika Maran.