Centre files petition Madras HC decision to allow Sun Group to bid in FM radio auction

The I&B and Home Ministries said that it is the exclusive privilege of the Centre to grant licence

The information and broadcasting ministry and its deputy director (FM) and the Union home ministry have filed an appeal against the Madras High Court’s single judge order, allowing the Kalanithi Maran-owned Sun Network’s FM channels to participate in the ongoing Phase-III FM e-auction.

On July 23, Judge M Sathyanarayanan allowed KAL Radio, Sun Network and South Asia FM, which are part of Sun Group, to take part in the e-auction of FM radio waves. The ministries sought quashing of the order.

In the appeal, it was stated the judge erred in issuing an interim direction permitting the companies to participate. By issuing the interim direction, the judge has practically granted relief in the main writ petition, while it is the case of the ministries that the companies have been denied security clearance, which is a condition precedent for participating in the e-auction, the government contended.

It was said in the appeal that "the observation of the Judge that the accused is presumed to be innocent unless the guilt is proven beyond a reasonable degree of doubt does not apply when the Government of India refused security clearance on the said ground and it is the Government of India alone which is the competent authority to decide on the security clearance and it is not for the court to substitute the opinion of the Government of India on this issue".

It was further stated the Judge ought to have seen that the companies were stopped from questioning the security clearance as it is one of the mandatory conditions mentioned in Clause 3.8 of the tender documents itself. The said aspect has not been considered by the Judge while granting interim order, the petition stated. Further, it was stated that the validity of Clause 3.8 of the Tender condition has not been questioned by the companies in the writ petition.

"The Judge ought to have held that in view of Clause 4.22.2 of the Tender conditions, the High Court of Delhi alone has jurisdiction to decide the issue and the findings given by the Judge at the Madras High Court has jurisdiction over any issue relating to notice inviting application is not correct in law. The Judge also erred in holding that the Indian Telegraph Act 1885 does not speak about obtaining security clearance," said the petition.

The Ministries have submitted Section 4 of the Act is very wide and it clearly provides that it is the exclusive privilege of the Central Government and it may grant license on such conditions etc.