Sun’s bid for radio FM rejected as home ministry blocks security clearance

The information and broadcasting ministry has been forced to reject auction bids by the Sun group as an adamant union home ministry refused to give security clearance to the Kalanidhi Maran-led television broadcasting company.

The government will now go ahead with the FM radio phase III auction without considering Sun Group's application, raising the spectre of possible action against even its existing TV channels as well.

An inter-ministerial committee today rejected the bids of Sun group's five companies because of the absence of security clearance.

Besides Sun, two other group companies have failed to make the cut because of technical reasons. There were altogether 28 pre-qualified bidders.

Sun group companies, Kal Radio Ltd, Sun TV Network Ltd, South Asia FM Limited, Digital Radio (Delhi) Broadcasting Ltd, Digital Radio (Mumbai) Broadcasting Ltd, have been excluded in the final list of pre-qualified bidders.

Shahi Shipping and Sunplant Broadcasting are the other two companies denied permission to participate in the auction on technical grounds.

Technically, the denial of security clearance for the sun group is likely to have a bearing on the other companies under its fold. The Sun group runs 45 radio stations besides 33 TV channels.

The home ministry's denial of security clearance to the Sun group is based on three cases against the owners - the  Aircel-Maxis case, an alleged money laundering case against Sun TV and an alleged 300-line exchange at Marans' home when Dayanidhi was the Union minister of communication and IT.

I&B ministry had, earlier, opposed the home ministry's move and had sought the opinion of attorney general Mukhul Rohatgi.

Backed by the AG's opinion, I&B ministry has argued that cancelling the licence of the group would have an adverse impact on business sentiment and the Modi government's  `Make in India' campaign.

The Association of Radio Operators for India (AROI) had also earlier written to PM Modi, homeministers Rajnath Singh and finance minister Arun Jaitley requesting that Red FM be allowed to continue to operate.

In the first phase of the auctions, government hopes to farm out 135 channels in 69 cities, after which the auctions are supposed to be held for slots in smaller cities.