The high court here on Friday set aside an order by the information and broadcasting ministry cancelling the provisional licence to the Maran family-run Kal Cables from midnight because of a lack of security clearance.
V Ramasubramanian quashed the cancellation saying no show-cause notice had been issued. He said the Centre was free to take action in respect of other violations, if any.
Kal Cables is only a distributor and not a broadcaster. The judge said if the licence were to be cancelled on security reasons, the ministry should have cancelled the licence of the broadcaster and not the distributor.
On August 20, the ministry had ordered the cancellation of the licence and had given 15 days to the multiple-system operator to stop its signals. The operator challenged the order saying it was not given an opportunity to show its cause. and it also alleged the ministry's decision was "against the principles of natural justice."
Last week, when the matter came up for hearing, the home ministry told the court that it would submit a report, which would give reasons on why the company was denied a licence.
Earlier this week, G Rajagopal, the Additional Solicitor General of India submitted a "confidential" report to the court. He refused to disclose any information related to the report, except for the court.
During arguments earlier this week, he said the ministry had received "adverse" notice and taking the interest of national security, economic interest and fair competition, the ministry had decided not to give the security clearance. He also told the court, "We don't know why the file had not come to the ministry between 2006 and 2013."
Senior Counsel P S Raman, who appeared for Kal Cables, argued that the company had fulfilled all the parameters to get the licence and it was not given a reasonable opportunity to present its case.
"We don't know what is in the report (submitted by the home ministry earlier in the week), we don't know what is the threat proposition," said Raman, who said "if" the clearance was not given because of the Marans, then it was questionable.
He argued that Kalanidhi Maran resigned from Kal Cables as chairman and director in September 2009, while his younger brother Dayanidhi resigned as the director when he became union minister in 2004. It might be noted, a charge sheet had been filed against both brothers on the Aircel-Marxis deal.
"None of the management representatives, board members or shareholders are facing any legal issues, no FIRs filed, no criminal proceedings or complaints against them," said Raman, who noted 75 per cent of the shareholding of Kal Cables is held by Mallika Maran, widow of Murasoli Maran and the balance 25 per cent held by DK Enterprise, a private entity.
He also argued that the company was not running any satellite channel and was not into transmission. "We (Kal Cables) are doing last mile connectivity."
