Sun TV confirms resolution of shareholding dispute between Maran Brothers

New Delhi: Sun TV Network has announced that a legal dispute between its promoter’s family members, Dayanidhi Maran and Kalanithi Maran, has been resolved, with all related notices withdrawn.

According to Bar and Bench, The company informed the stock exchanges that it had been notified by the promoter that “all the legal notices issued by the family member… have been unconditionally and irrevocably withdrawn” and that “the issues hereby stand resolved.” Sun TV reiterated that the matter was “purely personal in nature” and unrelated to its business operations.

The dispute stemmed from allegations made by Lok Sabha MP and former Union Minister Dayanidhi Maran, who accused his elder brother and Sun Group Chairman Kalanithi Maran of engaging in fraudulent transactions to secure a controlling interest in the company and its affiliates.

The notice alleged that Kalanithi Maran was allotted 12 lakh equity shares on 15 September 2003, representing a 60% stake, at a face value of Rs 10 each, despite their purported market value exceeding Rs 3,000 per share. Dayanidhi further claimed that shares belonging to their father, S N Maran, were illegally transmitted to their mother before the issuance of a death or legal heirship certificate, enabling further transfers to Kalanithi at below-market prices.

The allegations also stated that dividends declared in 2005 were used to purchase the 50% stake of M K Dayalu, wife of former Tamil Nadu Chief Minister M Karunanidhi, and to enrich certain associates, including Sun TV’s Joint Managing Director Kaveri Kalanithi. The notice accused specific professionals, including the company’s auditor, financial consultant, and company secretary, of aiding in the transactions and concealing irregularities.

According to Bar and Bench,Dayanidhi Maran had demanded the restoration of the shareholding structure as on September 15, 2003, repayment of dividends, and reversal of other financial benefits. He had also threatened legal action under various laws, including the Indian Penal Code, Companies Act, SEBI Act, and the Prevention of Money Laundering Act, as well as plans to approach the Serious Fraud Investigation Office (SFIO), the Enforcement Directorate (ED), the Registrar of Companies, SEBI, and other regulators. He also indicated an intention to seek cancellation of broadcasting, publishing, and aviation licences held by entities owned or controlled by Kalanithi Maran.

With the latest disclosure, Sun TV confirmed that the matter has now been settled privately and stressed that it had no impact on the company’s governance, financial position, or operations.