SUN TV feud between Maran brothers explained
What's the story
A feud has erupted within the Maran family, founders of the Sun Group. Dayanidhi Maran, a DMK lawmaker and former Union minister, has sent a legal notice to his elder brother, Kalanithi Maran.
The notice accuses Kalanithi of fraudulently taking control of the Sun TV Network through a disputed share allotment in 2003.
Dayanidhi is demanding that the company's shareholding structure be reverted to its pre-September 2003 state, when both families (the Maran family and Karunanidhi family) held equal shares.
Owners
Right owners
He is calling for the reinstatement of shares to their rightful owners: MK Dayalu Ammal, wife of the late Chief Minister M Karunanidhi, and the legal heirs of the late Murasoli Maran.
Dayanidhi said the original parent firm, M/s Sumangali Publications Private Limited, was founded on December 12, 1985, by only two promoters: MK Dayalu Ammal and Mallika Maran, Murasoli's wife.
According to the Times of India, each owned 50% of the company at the time of establishment.
Timeline
Shares were worth around ₹3,500 crore
The legal notice stated that in September 2003, when Murasoli was in critical condition and it was clear he would die any time, Kalanithi allotted himself 12 lakh equity shares of M/s SUN TV Private Limited without getting the approval of all other current shareholders.
Dayanidhi claims these shares were worth around ₹3,500 crore at the time but were priced at ₹10 each without proper valuation or approval.
Legal action
Demand to revert shareholding structure
He further alleges that this allotment allowed Kalanithi to earn over ₹5,926 crore in dividends till 2023 and ₹455 crore in 2024 alone.
He also accused Kalanithi and his wife, Kaveri, and other associates of misusing the "proceeds of crime" to acquire businesses and assets like Sun Direct TV, Kal Radios, Sun Pictures, South Asian FM, and Sunrisers Hyderabad.
Dayanidhi has demanded that all shares, assets, and financial benefits obtained since 2003 be returned to original shareholders within seven days.
Regulatory escalation
Dayanidhi to approach BCCI, SFIO
He also alleges investments in domestic and international mutual funds and REITs worth over ₹8,500 crore.
Dayanidhi has warned to take the matter up with the Serious Fraud Investigation Office (SFIO), Ministry of Information & Broadcasting and Board of Control for Cricket in India (BCCI).
He is seeking the cancellation of broadcasting licenses and ownership rights over Sunrisers Hyderabad.
The allegations include misuse of dividends, illegal share transfers, and complicity of auditors and company officials in facilitating fraud.
SUN TV
SUN TV management clarifies
In a clarification, Sun TV's management clarified that the matter dated back 22 years, when the corporation was closely held and private.
"The statements allegedly made in the (Moneycontrol) article are incorrect, misleading, speculating, defamatory, and are not supported by facts of law," the management stated in the statement.
It said that all acts were carried out in accordance with legal obligations and were duly vetted by the relevant intermediaries prior to the public issue (IPO).