In an affidavit, the government has said that in sensitive areas like "control over radio channels" have to be "necessarily safeguarded and protected from entry of persons who are considered to be undesirable and threat to the economic sovereignty of the country", sources said.
The view is based on inputs from various security agencies.
The Delhi High Court had on Wednesday sought the Centre's response on a plea by Digital Radio Broadcasting Ltd, which runs Red FM (a Sun Group company) against the government's decision denying it permission to participate in the third phase of FM auction.
Digital Radio's application to participate in the auction was rejected as it was not given security clearance by the Union Home Ministry on the ground that Kalanithi Maran, a shareholder in the radio channel, was facing prosecution in a money laundering case, as per their plea.