Home Ministry top sources favour non-renewal of Sun TV licence

Sun TV shares fell by a sharp 6% on account of reports that the Prime Minister's Office has indicated that it finds merit in the Home Ministry's case against Sun TV

The Union home ministry is not in favour of reviewing its decision to block the broadcasting licence of Sun TV. According to sources, the ministry still stands by its earlier decision that the sources of funding of the group were dubious and recommends that its once-in-10-year security clearance not be renewed, despite the top law officer of the government having advised renewal of licence.

On Tuesday, Sun TV shares fell six per cent on account of reports that the Prime Minister’s Office has indicated that it finds merit in the home ministry’s case against Sun TV. Last week, Attorney General Mukul Rohatgi had advised the government that renewal of licence had nothing to do with sources of funding, and that scrapping of the license on the grounds cited  might not be legally tenable.

Home Minister Rajnath Singh's tough stance has triggered a standoff with Information and Broadcasting Minister Arun Jaitley, who is in favour of renewal. Now, the matter has to be resolved at a very high level, once Jaitley returns from the US on Thursday.

 

The I&B ministry the attorney-general (AG) have argued that Sun TV promoter Kalanithi Maran faces corruption cases, which do not impinge on the national security.

But the home ministry, emboldened by its recent crackdown on foreign funding of thousands of NGOs or non-governmental organisations, including Greenpeace, has maintained that any security clearance to Sun TV could have ramifications on the economic security of India. However, the home ministry will not challenge the opinion of AG.

Senior government sources denied the buzz that the Centre was victimising Sun TV for its proximity to the Dravida Munnetra Kazhagam, now that the Narendra Modi led government is in need of the support of the J Jayalalithaa-led All India Anna Dravida Munnetra Kazhagam in the Rajya Sabha. In a development related to the Tamil Nadu politics, Bharatiya Janata Party (BJP) spokesperson GVL Narasimha Rao has accused the Congress of indulging in “vendetta politics” for the decision taken by Siddaramaiah-led Congress government in Karnataka to move the Supreme Court in the disproportionate assets case of Tamil Nadu CM J Jayalalithaa.

Sun TV shares have seen significant ups and downs in the past week, with investors reacting to news flows. On June 8, Sun TV shares crashed by a whopping 28 per cent when news trickled in that the Home Ministry does not favour renewal of security clearance. But the stock recovered by 10 per cent on Friday, after the Attorney General’s stand became public. Today, Sun TV shares ended 3.35 per cent lower at Rs 322.

Sun TV’s promoters Kalanithi Maran, and his brother Dayanidhi, nephews of DMK patriarch M Karunanidhi, are facing a CBI probe over alleged allotment of 300 high speed BSNL telephone lines to the residence of former IT Minister Dayanidhi in Chennai, which were extended to Kalanithi promoted channels. The CBI is also investigating Kalanithi in the Aircel-Maxis case and an Enforcement Directorate case of money laundering.
STAND-OFF

• It was reported that the PMO had indicated it found merit in home ministry’s case against Sun TV
• Home ministry is persisting with its claim that some of the funding of the media house was dubious
• However, I&B ministry has been in favour of renewal
• This has caused a stand-off between the home ministry and I&B ministry
• The matter is now to be resolved at a high-level meeting once Jaitley returns from the US on Thursday