Sun TV plunges as MHA denies clearance, may go off air

NEW DELHI: Sun TV Ltd plunged closed the session at Rs 278.90, down 21.73%.

The stock fell as much as 27.77 per cent in intraday trade on Monday, after media reports suggested that the Home Ministry has struck down an Information and Broadcasting Ministry's proposal for giving security clearance to 33 television channels of Kalanithi Maran-promoted Sun TV Network, a move that could lead to cancellation of their broadcasting licence.

The I&B Ministry has been informed about the decision of the Home Ministry, which was believed to have been influenced by pending criminal cases against Maran and his brother and former Union Minister Dayanidhi Maran, PTI reported quoting an official sources.

However, SL Narayanan, Group CFO, Sun Group, in an interview with ET Now said that they have not received any communication from Home Ministry on security clearance. He further adds that we have never commited any breach of law.

The Maran brothers are facing a CBI probe over alleged allotment of 300 high-speed BSNL telephone lines to the residence of former Communications and Information Technology Minister Dayanidhi Maran in Chennai which were extended to his brother's channel.

The Sun TV Network is one of India's largest media groups whose TV channels reach more than 95 million households in India.

The Network had applied to the Information and Broadcasting Ministry for renewing its broadcasting licence for 10 years. The process required security clearance from the Home Ministry.