Sun Group moves Madras High Court for participation in FM Phase-III auction

CHENNAI: Sun group today moved the Madras High Court challenging refusal of security clearance by the Union Home Ministry and the government's decision not to allow it to participate the Phase-III auction process of FM radio.

It contended that the government action had been taken 'carelessly' and for closure of its 45 FM stations across the country for "extraneous, illegal and malafide reasons" besides preventing it from taking part in the auction.

In a batch of six petitions, the Group and its companies also sought a stay on the July 15 order of the Union Ministry of Information and Broadcasting refusing permission to the Group company to participate in the phase III FM auctions on the basis of non-security clearance from the Union Home Ministry.

The petitions, which sought a direction to the I&B Ministry to permit it for re-submission of its applications and allow it in the participation of bids, are expected to come up for hearing tomorrow or Wednesday.

Assailing the I&B Ministry order, the petitions charged "A perusal of the (July 15) order reflects that it had been issued carelessly, with total non-application of mind and in a cavalier fashion, totally unmindful of its consequences and repercussions not only on Sun TV but also on the entire broadcasting and media industry.

The group submitted that the company and its Group were not involved in any violation of conditions and had not broadcast anything that affected the security of the nation.

Claiming that Indian Telegraph Act did not stipulate security clearance, it said that as per the terms of license, "the license can be denied when there is default in payment of license fees and breach of any terms and conditions contained in the agreement."