Sun TV Network Limited has denied receiving any communication from either the Ministry of Home Affairs (MHA) or the Ministry of Information and Broadcasting (MIB), in regards to rejection of security clearance of its television channels, the company informed BSE.
Apparently, MHA has denied security clearance to all 33 channels of the Chennai-based Sun TV Network due to ‘economic security’, as indicated by this IndianTelevision.com report. This could in effect lead to the cancellation of its broadcasting license. One of the likely reason for this is the ongoing CBI probe against Sun Group founder and MD Kalanithi Maran and his brother Dayanidhi Maran in regards to the Aircel-Maxis 2G spectrum allocation case. Earlier this year, the Enforcement Directorate (ED) had attached assets worth Rs 742 crore belonging to the Maran brothers. The CBI is also probing another case against the brothers regarding the alleged allotment of 300 high speed BSNL telephone lines to Dayanidhi Maran’s Chennai residence, which were then extended to Sun TV.
Previously, the MHA had also denied security clearance to about 50 FM stations owned by the Sun Group. However, Sun TV will really feel the pinch in case its TV channels are forced to go off air. Sun TV’s share prices dropped by about 22% after the news of the denial of security clearance was reported.
Sun TV financials: Sun TV reported revenues of Rs 548.58 crore for the quarter ended March 31, 2015, marginally down from Rs 552 crore revenues reported in the last quarter. However, the revenues were up 5.45% from Rs 520.18 crore in the corresponding quarter last year. The company did not disclose its DTH or advertisement segment revenues for the quarter. The company posted a net profit of Rs 202.99 crore this quarter, a decrease of 5.2% from Rs 214.13 crore last quarter, although an increase of 2.74% from Rs 197.57 crore the corresponding quarter last year.