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Tag: Dayanidhi Maran

  • Maran brothers’ feud ends with a Rs 800 crore handshake: media reports

    Maran brothers’ feud ends with a Rs 800 crore handshake: media reports

    MUMBAI: According to news daily Indian Express, a bitter family dispute between the Maran brothers, Kalanithi and Dayanidhi, has been resolved following the direct intervention of Tamil Nadu chief minister M K Stalin. The settlement, which saw DMK MP Dayanidhi Maran reportedly receive around Rs 800 crore in cash and nearly an acre of prime land in Chennai’s exclusive Boat Club area valued at an estimated Rs 100 crore, brings an end to a row that had rattled investor confidence and threatened the DMK’s image.

    The feud boiled over in early June when Dayanidhi issued a legal notice to his elder brother Kalanithi, alleging fraudulent share allotments and corporate misgovernance at Sun TV Network in the early 2000s. Dayanidhi had initially sought Rs 1,500 crore, while Kalanithi was only willing to offer Rs 500 crore.

    Stalin, who has previously mediated within the Maran family, initially attempted to resolve the matter himself. When this failed, he enlisted the help of Dravidar Kazhagam president K Veeramani and senior journalist N Ram, both of whom have close ties to the family. Sources indicate that three rounds of talks, including two in person and one via video conference, ultimately led to the agreement.

    Dayanidhi’s legal notice specifically claimed that in 2003, while their father Murasoli Maran was in a coma, Kalanithi allegedly allotted himself 1.2 million equity shares at a nominal Rs 10 per share, consolidating over 60 per cent of Sun TV. This, the notice alleged, diluted the stakes of the Maran and M Karunanidhi families from 50 per cent each to 20 per cent.

    Sun TV, in a stock exchange filing on June 20, vehemently denied the allegations, calling them “incorrect, misleading, speculative, defamatory and not supported by facts or law,” and stated that all transactions were legally vetted prior to the company’s public listing.

    Despite Sun TV’s rebuttal, the controversy sent tremors through the markets, causing its share price to drop over 5 per cent in intra-day trading, and an overall decline of about 8 per cent from recent highs, unsettling investors.

    A top source within the DMK first family confirmed that Stalin was visibly displeased by the public nature of the dispute, especially with assembly elections looming next year. His decision to bring in the 91-year-old Veeramani, an elder statesman of Tamil Nadu politics, was due to his respected stature and lack of financial interest in Sun TV.

    N Ram, a relative of the Maran family and former editor of The Hindu, also played a crucial role, lending credibility and balance to the mediation given his standing in the media world and ideological alignment with the DMK.

    “First, Veeramani phoned the Maran family. After that the others also joined, and three rounds of talks were held between the last week of June and the first week of July,” a source revealed, adding, “Both parties were asked to refrain from speaking to the media and were urged to settle and move on.”

    The talks underscored the potential damage to the DMK’s and Maran family’s reputation, as well as the high costs and protracted nature of continued litigation.

    The late Murasoli Maran, a nephew of Karunanidhi and cousin to Stalin, was instrumental in establishing the DMK’s presence in Delhi and served as a cabinet minister in multiple central governments. His presence as family patriarch had previously maintained peace between Kalanithi, who built the Sun TV empire, and Dayanidhi, who leveraged his father’s legacy to become the union minister for telecom.

    The first major rift, the Indian Express reported,  occurred in 2007 when the Maran family’s newspaper, Dinakaran, published a poll favouring Stalin as Karunanidhi’s political heir over M Alagiri, leading to violent reactions from Alagiri’s supporters. While tensions have simmered since, the financial dimension of this latest dispute made it one of the most severe.

    “This whole thing could have gone the other way,” a senior source commented. “But Stalin, Veeramani, and Ram made it clear: let this end now, before it weakens everyone.”

     Indian Express failed to get any comments from N. Ram, the Marans or the chief minister. 

  • Aircel-Maxis case: 2G court seeks to speed trial against Marans

    Aircel-Maxis case: 2G court seeks to speed trial against Marans

    MUMBAI: Is the hand of the law closing in on Sun TV promoter Kalanithi Maran and his brother, the former telecom minister, Dayanidhi Maran?

    A special 2G court has decided that the trial against the two brothers be separated from Malaysian nationals T.Ananda Krishnan and Augustus Ralph Marshall and two firms Astro All Asia Network PLC and Maxis Communication Berhad, co-accused in the Aircel-Maxis case. The reason: the latter may not appear, which could delay the trial proceedings.

    According to a PTI report, special judge O.P. Saini has ordered the issue of an open and perpetual arrest warrant against Krishnan and Marshall.

    Krishnan is the driving force behind the leading Malaysian DTH operator Astro and was once known for his proximity to former Malaysian prime minister Mahathir Mohammed.

    Despite several efforts, summons have not been served on both, Krishnan and Marshall, as the Malaysian authorities have not been cooperating and effecting the service. This is despite the legal mutual assistance treaty between India and the south east Asian nation.

    The CBI, which has filed the charge sheet against the eight accused for offences punishable under section 120-B (criminal conspiracy) of the IPC and under relevant provisions of the Prevention of Corruption Act, had pleaded with the court to issue arrest warrants against Krishnan and Marshall in August.

    In the 27-page order, the court noted that the allegations against the accused were “serious” and the only way left was to approach Interpol for which issuance of warrant was necessary.

    Said the court:

    “It is ordered that the trial of the appearing accused, that is, Dayanidhi Maran, Kalanithi Maran, M/s Sun Direct TV Pvt Ltd and M/s South Asia Entertainment Holdings Ltd be segregated from the trial of accused Ralph Marshall, T Ananda Krishnan, M/s Astro All Asia Network Plc and M/s Maxis Communications Berhad.

    “Miscellaneous file be opened relating these four accused, who are yet to be served. It is further ordered that an open and perpetual warrant of arrest be issued against Marshall and Krishnan.”

    “Malaysian authorities have categorically declined to effect the service. In such a situation, the only way left is to approach the Interpol and for that issue of warrant is necessary…

    “In such a situation when further issuance of summons would be a futile exercise, it is rightful for the prosecution to ask for warrant of arrest against the accused.”

  • Aircel-Maxis case: 2G court seeks to speed trial against Marans

    Aircel-Maxis case: 2G court seeks to speed trial against Marans

    MUMBAI: Is the hand of the law closing in on Sun TV promoter Kalanithi Maran and his brother, the former telecom minister, Dayanidhi Maran?

    A special 2G court has decided that the trial against the two brothers be separated from Malaysian nationals T.Ananda Krishnan and Augustus Ralph Marshall and two firms Astro All Asia Network PLC and Maxis Communication Berhad, co-accused in the Aircel-Maxis case. The reason: the latter may not appear, which could delay the trial proceedings.

    According to a PTI report, special judge O.P. Saini has ordered the issue of an open and perpetual arrest warrant against Krishnan and Marshall.

    Krishnan is the driving force behind the leading Malaysian DTH operator Astro and was once known for his proximity to former Malaysian prime minister Mahathir Mohammed.

    Despite several efforts, summons have not been served on both, Krishnan and Marshall, as the Malaysian authorities have not been cooperating and effecting the service. This is despite the legal mutual assistance treaty between India and the south east Asian nation.

    The CBI, which has filed the charge sheet against the eight accused for offences punishable under section 120-B (criminal conspiracy) of the IPC and under relevant provisions of the Prevention of Corruption Act, had pleaded with the court to issue arrest warrants against Krishnan and Marshall in August.

    In the 27-page order, the court noted that the allegations against the accused were “serious” and the only way left was to approach Interpol for which issuance of warrant was necessary.

    Said the court:

    “It is ordered that the trial of the appearing accused, that is, Dayanidhi Maran, Kalanithi Maran, M/s Sun Direct TV Pvt Ltd and M/s South Asia Entertainment Holdings Ltd be segregated from the trial of accused Ralph Marshall, T Ananda Krishnan, M/s Astro All Asia Network Plc and M/s Maxis Communications Berhad.

    “Miscellaneous file be opened relating these four accused, who are yet to be served. It is further ordered that an open and perpetual warrant of arrest be issued against Marshall and Krishnan.”

    “Malaysian authorities have categorically declined to effect the service. In such a situation, the only way left is to approach the Interpol and for that issue of warrant is necessary…

    “In such a situation when further issuance of summons would be a futile exercise, it is rightful for the prosecution to ask for warrant of arrest against the accused.”

  • ED charge-sheet may jeopardise expansion plans of Sun TV and FM; group considering legal options

    ED charge-sheet may jeopardise expansion plans of Sun TV and FM; group considering legal options

    NEW DELHI: The security clearances for both the proposals for expansion of Sun TV and the group’s FM channels will get further jeopardised with the filing of a charge-sheet against the Maran brothers Kalanithi and Dayanidhi, Kalanithi Maran’s wife Kavery Maran and three others including two companies.

     

    A spokesperson for the group told Indiantelevision.com from Chennai that the company was examining legal recourse to ensue that the expansion plans are not jeopardised as they are linked to freedom of the press and have nothing to do with the alleged money-laundering cases.

     

    This follows the corruption case lodged by the Central Bureau of Investigation in the Aircel-Maxis deal. The complaint alleged that Rs 742.58 crore was paid for former Telecom Minister Dayanidhi Maran by two Mauritius-based companies through Sun Direct TV Pvt. Ltd and South Asia FM Ltd.

     

    Special Judge O P Saini here has fixed 18 January as the date for consideration and taking cognisance of the complaint, asked the ED to place all relevant documents before it.

     

    The two companies are owned and controlled by Kalanidhi, and the money was utilised by these companies for their business, the complaint alleged.

     

    SAFL, SDTPL and SAFL managing director K Shanmugam has also been named as accused in the complaint.

     

    Dayanidhi allegedly obtained the proceeds of crime (Rs 742.58 crore) by camouflaging it as capital contribution in SDTPL and SAFL and thus committed the offence of money laundering under the Prevention of Money Laundering Act, the complaint said.

     

    SDTPL is owned and controlled by Kalanithi and Kaveri, being the chairman and the director respectively. It received the proceeds of crime, Rs 549.03 crore for Dayanidhi in the guise of foreign investment, which was consumed by it in its business, the complaint said.

     

    SAFL received Rs 193.55 crore for Dayanidhi by projecting it as capital contribution received by the company. This amount was also consumed by SAFL in its business.

     

    The ED had on 1 April last attached assets of Dayanidhi, Kalanidhi and Kaveri Kalanidhi and other accused equivalent to proceeds of crime of (Rs 742.58 crore).

     

    Earlier, the CBI in August 2014 had chargesheeted Maran brothers, Malaysian business tycoon T Ananda Krishnan, Malaysian national Augustus Ralph Marshall and four companies — Sun Direct TV, Maxis Communication Berhad, South Asia Entertainment Holding Ltd and Astro All Asia Network PLC — in the case.

     

    The CBI had earlier alleged in the court that Dayanidhi had “pressured” and “forced” Chennai-based telecom promoter C Sivasankaran to sell his stakes in Aircel and two subsidiary firms to Malaysian firm Maxis Group in 2006.

  • SC stays ED proceedings in Aircel-Maxis case to attach Sun TV assets

    SC stays ED proceedings in Aircel-Maxis case to attach Sun TV assets

    NEW DELHI: For the second time within a month, the Supreme Court has come to the rescue of the beleaguered Sun TV group owned by the Maran brothers.

     

    Earlier on 26 July, the apex Court had permitted the FM channels associated with the group to take part in the e-auctions that commenced on 27 July.

     

    The SC today stayed the attachment proceedings before the Enforcement Directorate (ED) Adjudicating Authority against Sun TV assets of the Maran brothers in the Aircel-Maxis case.

     

    The Court, however, said the provisional attachment order issued by the ED would stay alive even if the 180-day period for confirming the attachment order is over.

     

    ED had ordered provisional attachment of assets of Sun TV worth Rs 742 crore allegedly linked to the Aircel-Maxis deal. The attachment order was under the Prevention of Money Laundering Act.

     

    Sun TV had approached the Supreme Court against a Madras High Court order refusing to hear their plea against the provisional attachment on the grounds that the case was linked to the 2G spectrum scam, which is already pending before the bench headed by the Chief Justice of the apex court.

  • Dayanidhi Maran’s arrest stayed by Supreme Court

    Dayanidhi Maran’s arrest stayed by Supreme Court

    NEW DELHI: The Supreme Court today stayed the Madras High Court order cancelling former Telecom Minister Dayanidhi Maran’s anticipatory bail in the illegal telephone exchange case.

     

    Issuing notice to the Central Bureau of Investigation (CBI) to reply within two weeks, the court listed the matter for 14 September.

     

    Attorney General Mukul Rohatgi appearing for CBI referred to the facts of the case to stress that it was a huge corruption case and said, “Maran used clout in government to fix lines for use of the huge media house Sun TV. We want his custody to prove the conspiracy involving Maran, Sun TV network and BSNL.”

     

    Maran had argued that bail is cancelled only when there is danger of the person fleeing the country or influencing the witnesses in the case. In this case, he contended that neither apprehension was considered or sounded out in the High Court order. He contended that the CBI had sought the cancellation of his bail only to humiliate him.

     

    Justice T S Thakur and Justice V. Gopala Gowda questioned both Maran’s counsel Shyam Diwan and Rohatgi before giving their order.

     

    Justice Thakur asked whether political vendetta was behind the push for Maran’s arrest. Asking the CBI whether it was trying to “fix” him, Justice Thakur asked, “Why do the CBI need to arrest a man for Rs 1 crore pending phone bills? When the FIR was filed in 2013, why did you not make any arrest? What were you doing for nearly three years?”

     

    “If you think the phone lines were fixed as part of conspiracy, question him, question the BSNL officials. Why arrest him?” he said.

     

    “Is it a matter of prestige for you to arrest him? Nobody should get away after causing public loss but custodial interrogation? How did you assess the Rs 1 crore loss? You say no bills were raised. Anyway he is willing to pay. You raise the bill now and he will pay up,” Justice Thakur said.

     

    Diwan added, “There is no criminality in this case, only monetary claim. We will pay if any dues.”

     

    Earlier, the former Telecom Minister argued that the Madras High Court did not consider the legal circumstances before cancellation of bail and the order was an error in law.

     

    According to the prosecution, Maran as Minister entered into a criminal conspiracy with officials of the BSNL and by abusing their official positions, caused a huge financial loss and wrongful loss to the exchequer to the tune of Rs 1.78 crore.

     

    The prosecution alleged that the former Minister installed over 300 telephone connections in his residence in the name of the accused government servants to show these connections illegally under “service category,” thereby making no payments for the installation and rentals.

     

    Maran was granted anticipatory bail for six weeks on the condition that he would cooperate with the agency in the investigation. 

  • Security clearance clause for FM Phase III applies to companies & directors, not shareholders: Delhi HC

    Security clearance clause for FM Phase III applies to companies & directors, not shareholders: Delhi HC

    NEW DELHI: The Delhi High Court, which permitted Red FM to take part in the FM Phase III e-auctions that commenced today (27 July), said Digital Radio (Delhi) Broadcasting Ltd and Digital Radio (Mumbai) Broadcasting Ltd, which run Red FM in these two cities have not been alleged to be vehicles of any transgression of law and have been functioning since 2002-2003 without there being any allegation regarding their functioning resulting in any security concerns.

     

    Justices Badar Durrez Ahmed and Sanjeev Sachdeva, who had read out the operative portion yesterday (26 July), said Clause 3.8 of the Notice Inviting Applications had reference only to the company and its directors and there is no mention of its shareholders.

     

    Both Dayanidhi Maran and Kalanithi Maran are shareholders and therefore the Clause does not apply to them.

     

    At the outset, the Court said it was not adjudicating on the validity of clause 3.8. Although appeals have been made seeking the quashing of Clause 3.8, the main thrust of the arguments of Counsel Kapil Sibal and Dr Abhishek Manu Singhvi was on the interpretation of Clause 3.8 and whether the same was applied correctly or not. In any event, since the petitioners have participated in the auction process, they cannot now challenge Clause 3.8.

     

    The court also said that it was not touching upon the policy of requiring a security clearance. “We are, as rightly pointed out by Mr Tushar Mehta, Additional Solicitor General of India, not sitting in appeal over the decision of the Government as to the security angle assessment insofar as Dayanidhi Maran or Kalanithi Maran are concerned. We are also not called upon to comment upon, nor have we, as to whether the allegations/charges against the said two individuals and Sun TV are well founded or unfounded. Those would be decided in criminal proceedings,” the Court said.

     

    Thus the limited extent of judicial review was whether the security assessment in respect of the Maran brothers was germane to the requirements of security clearance prescribed in Clause 3.8 of the NIA. Clause 3.8 stipulates the requirement of a security clearance of the “company” as well as all its “Directors on the Board.” Now, on plain reading, this would imply that the company, which has applied must be security cleared. Not only the corporate entity, which is distinct and separate in law, but also its directors as individuals, distinct from the corporate entity, have to be security cleared. At the same time, the clause does not, on plain reading, extend to shareholders of the applicant company.

     

    The Government had argued that if the shareholders are not roped in then it would amount to ascribing a very narrow meaning to Clause 3.8 of the NIA, which would defeat the very purpose of having a security clearance particularly in this very sensitive field of radio waves.

     

    “We are afraid we cannot agree with this submission. Dr Singhvi was right in submitting that the clause has serious ramifications extending far beyond the present e-auction. If security clearance were to be denied to a company, as has happened in the two cases before us, that would a blot on that company – a badge of dishonour – as Dr Singhvi put it. When such serious penal consequences are to follow then the provisions of Clause 3.8 would require a strict interpretation and if there were any doubt, an interpretation against the maker of the clause would have to be adopted,” the Court said.

     

    Furthermore, the Court said there was no allegation that the petitioner companies were created as a “camouflage to shield the persons exercising control over them from any liability. There is also no allegation that the petitioner companies themselves have indulged in any activities, which could raise security concerns. In fact, both the petitioner companies have been operating their licenses under Phases I and II since 2002-2003. Even when the cases against the Marans were registered in 2011, the petitioner companies have continued to operate their respective radio channels without any objection concerning security issues. As pointed out by Mr Sibal, both these companies got extensions of their licenses by six months as recently as on 31 March 2015. Even then, no security concerns were raised in respect of the two companies.”

     

    It was pointed out by Sibal that in respect of the various cases against the Marans, nobody has been convicted and in fact, the charge-sheet has been filed in only one of four cases.

  • Madras HC permits Sun Group’s Suryan FM to participate in auction

    Madras HC permits Sun Group’s Suryan FM to participate in auction

    MUMBAI: Following the Delhi High Court’s interim order, which permitted Red FM to attend mock auctions for Phase III, a directive has been issued by the Madras High Court, allowing Suryan FM to participate in the actual FM auctions.

     

    With this, Sun Group’s Kal Radio, which runs Suryan FM, will now participate in the auctions. Sun Group earlier challenged the Union Ministry’s decision of not giving the company security clearance, due to which the Information and Broadcasting (I&B) Ministry failed to include Sun Group in the pre-bidders list for the Phase III auctions process.

     

    No official statement was issued at the time of filing this report, as the Network is awaiting the hard copy from High Court. Justice M Sathyanarayanan passed the order on the petition filed by the company.

     

    A few days ago, the networks – Digital Radio Broadcasting and Kal Radio, approached the Delhi and Madras High Courts seeking judicial directive on the Ministry’s decision to keep them away from the auctions.

     

    Mock auctions for Phase III are scheduled to take place on 22 and 23 July, 2015, while the actual auction will begin from 27 July, 2015.

     

    P S Raman, senior counsel had appeared on behalf of the petitioner. He pointed out that Dayanidhi Maran is not a shareholder in any of these companies, and that he is under serious charges, and not the company or its subsidiaries. The reason for denial by the Ministry was in line with allegations of Dayanidhi Maran’s holding in the companies. Raman also argued that restriction is against the fundamental rights of freedom of expression.

     

    He also stated that there is no clause in the Indian Telegraph Act, 1885, where there is a mention of security clearance.

     

    The Sun Group counsel also pointed out that Reliance’s Big FM was permitted to take part in the auctions even though the network was under serious charges as well.

     

    On the other hand, Additional Solicitor General G Rajagopalan pointed fingers at the group’s promoters facing serious economic offences. According to the Centre, it will not go down well with the people of the country, if the network was permitted to participate in bidding of licenses.

     

    Meanwhile, the final verdict from the Delhi High Court is expected to be revealed on 24 July.

  • MIB seeks Home Ministry reply on Sun TV case; SC to hear 2G case against Marans on 25 July

    MIB seeks Home Ministry reply on Sun TV case; SC to hear 2G case against Marans on 25 July

    NEW DELHI: The Ministry of Information and Broadcasting (MIB) has sought a detailed report from the Ministry of Home Affairs (MHA) on the reasons for denial of security clearance to Sun TV Network channels.

     

    Noting that the reasons given by the MHA in an earlier communication were vague, an MIB official said that it would need to know full details in the event of Sun TV moving the courts on the issue.

     

    The MIB had earlier written to the Home Ministry seeking the reasons for denial of security clearance to the Sun TV network promoted by Kalanithi Maran and his brother Dayanidhi Maran against whom other cases are also pending. However, the official said that the reply was vague and hence more details had been sought in view of a possible challenge in court.

     

    The MHA had rejected the opinion of Attorney General Mukul Rohatgi that security clearance can be granted as agencies are probing cases related to corruption and not security. Hence, he said, corruption cases cannot be the ground to deny security clearance. The Prime Minister’s Office (PMO) is also learnt to have told the two ministries to sort this out among themselves.

     

    Meanwhile, on 25 July the Supreme Court will hear the petition of Sun TV whose assets are threatened to be attached in the 2G-related scam. 

     

    Chief Justice H L Dattu, while hearing the petition, asked the specially appointed prosecutor in the scam not to proceed against the firm till then. 

     

    Kapil Sibal, who appeared for the beleaguered firm of the Marans, sought injunction against attachment, stating that Rs 14,000 crore worth of assets are involved. 

     

    The Chief Justice accepted his argument that only the Supreme Court Bench monitoring the 2G affairs was competent to hear the case. 

  • PMO unlikely to intervene in Sun TV case

    PMO unlikely to intervene in Sun TV case

    MUMBAI: There seems to be no respite for Kalanithi Maran owned Sun TV Network, as the Prime Minister’s Office (PMO) is unlikely to intervene on the issue of withdrawal of security clearance to the 33 channels of the network.

     

    According to a PTI report, the PMO is not keen on over-ruling the Home Ministry’s decision of withdrawing the security clearance given to Sun TV Network, on grounds of the ongoing criminal probes against promoter Kalanithi Maran and his brother and former Union Minister Dayanidhi Maran.

     

    It can be noted that Information and Broadcasting Minister Arun Jaitley had recently met the Prime Minister to take his opinion, after the Attorney General ruled in favour of Sun TV Network and the Ministry of Home Affairs decided to not budge from its stand of not giving security clearance to the Chennai based broadcast network.

     

    According to the report, the key reason for the PMO’s unwillingness to get involved in the Sun TV issue is the CBI probe that the Maran brothers were facing over alleged allotment of 300 high-speed BSNL telephone lines to their installations when Dayanidhi Maran was Telecom Minister. 

    Last week, the CBI questioned Dayanidhi Maran for 22 hours spread over three days in connection with the case.