In a major blow to the SunTV, owned by the billionaire Kalanithi Maran, the shares of the company has crashed to 28percent. Concerns accumulated the company as the Home Ministry has declined to give a security clearance to the company. The decision of the Home Ministry could force the company to stop airing its 33 channels.
Citing sources in the ministry, the Press Trust of India, said that the Home Ministry has struck down the security clearance proposal sent by the Union Broadcasting ministry. The PTI claimed that the reason behind this, was the pending criminal cases behind Kalanithi Maran, his brother and former Union Minister Dayanidi maran. Broadcasters like the SunTV, according to the norms require security clearances every ten years to continue their operations.
CFO of Sun TV, Mr. SL Narayanan, said that they haven’t received any orders or notice from the Home Ministry. He further added the company would move the court to get a stay once the notice arrives.
The critics feel that the move will be a major jolt to the SunTV, as it is the number one broadcasting firm in the four states of South India viz,. Tamilnadu, Andhra Pradesh, Karanataka and Kerala.
Earlier, the Home Ministry has also denied security clearances to 40 FM channels run by the Sun network. However, the company got a interim relief after getting a stay from the Madras court.
Sun TV shares traded at a loss of 22percent at Rs.277.70, the stock has fallen to a 52 week earlier low of Rs.258, the NDTV profits reports.