Sun TV stock tanks 6% intraday, end of day share down by 3.41 %

Stock reacts to reports that PMO found merit in MHA's argument on denying security clearance to Sun TV's channels

After rebounding sharply, nearly 10% last Friday, media tycoon Kalanithi Maran controlled Sun Television Network (Sun Tv) tanked around six percent intraday on Tuesday. At the end of trading hour, the share fell by 3.41% to Rs 321.95 a share at Bombay Stock Exchange.

The stock reacted to reports, which stated that the Prime Minister's Office (PMO) has likely found merit in ministry of home affairs (MHA) argument on denial of security clearance to Sun TV's 33 channels.

On Friday the stock rose after the Attorney General of India (AG) Mukul Rohatgi had said that MHA's denial for security clearance to Sun TV's 33 channels is incorrect. It may be noted, the MHA had denied security clearance to Sun TV on the basis of an ongoing probe against Maran by the Central Bureau of Investigation (CBI) and the and Enforcement Directorate (ED) in Aircel-Maxis deal.

 

Broadcasters such as Sun TV need a security clearance every 10 years in order to continue their operations. While I&B Ministry cleared the proposal, the Home Ministry denied the clearance since Maran is facing inquiries.

CBI alleged that Dayanidhi Maran, younger brother of Kalanithi Maran and former Union Minister, misused his office, when he was the Union Minister, allegedly to force C Sivasankaran to sell his shares in telecom firm Aircel to Malaysia-based Maxis Group. It was also alleged that in exchange, Maxis paid "illegal gratification" worth more than Rs 700 crore, a part of which was allegedly invested in a company, which is part of the Sun Group, owned by his brother, Kalanithi Maran.

On April 1, 2015, the Enforcement Directorate (ED) issued a press release, announcing that the properties and shares of the Maran brothers and Kalanithi Maran's wife Kaveri Kalanithi were attached by the Directorate in respect of the offence of money laundering relating to the illegal gratification amounting to Rs 742.58 crore received by Dayanidhi Maran.