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Hindustan Times
4 hours ago
- Business
- Hindustan Times
Maran vs Maran: Sun TV family feud explained; what Dayanidhi said in legal notice to Kalanithi
Former Union minister and Dravida Munnetra Kazhagam (DMK) leader Dayanidhi Maran has accused his brother Kalanithi Maran of "financial crimes" since 2003 over Sun TV Private Limited, asking him to restore the entire shareholding position of the group and its related companies to their original state. The legal notice Dayanidhi sent to his brother alleged that Kalanithi Maran allotted 1.2 million equity shares of Sun TV Private Limited at ₹10 each in his name, with the claim that this was done without any proper valuation and fair consideration. Reportedly, Kalanithi did not own a single share in the company till September 15, 2003. According to the former Union minister, the "illegal" activities began in September 2003, days after their late father and former Union minister Murasoli Maran was brought back to Chennai from the US, where he was undergoing treatment, HT reported. Following Murasoli's death in November 2003, the shares were transferred to their mother, Mallika Maran, without any legal documentation. Dayanidhi has, however, alleged that Kalanithi transferred the shares to himself at ₹10 each just three days after Murasoli's death, which must be even before the issuance of the death certificate. The notice reportedly called the transfer void and fraudulent. Kalanithi allegedly derived dividends of ₹5,926 crore until 2023 and ₹455 crore in the 2024 fiscal. Dayanidhi said his brother's offences are 'continuous in nature and continue as on date'. The Sun TV Network's consolidated income for the 2024-25 financial year was ₹4,712.60 crore, down 1.55 per cent. Kalanithi Maran "illicitly acquired" the shares of their aunt and Karunanidhi's widow, MK Dayalu, using funds drawn from Sun TV Private Limited, the notice alleged. The notice read, "You and your accomplices have deliberately abused your fiduciary and professional obligations to commit a series of calculated and coordinated financial crimes." Dayanidhi alleged that such acts equate to white-collar criminality of the highest order, causing irreparable loss to the legitimate stakeholders of the companies in question. Dayanidhi's notice further alleged that the shares were allotted to Kalanithi without consent from stakeholders, i.e., the families of Murasoli Maran and DMK founder M Karunanidhi. The DMK leader also sent legal notices to his brother's wife, Kaveri Kalanithi, Sun TV's company secretary Ravi Ramamoorthy, and auditor Sivasubramanian. Kaveri is reportedly accused of drawing a salary of ₹87.5 crore annually. Dayanidhi has also threatened to approach the central government, the Board of Control for Cricket in India, and the Directorate General of Civil Aviation for action against the licenses of the Sun Group, Indian Premier League team Sunrisers Hyderabad, and the operation of SpiceJet Ltd. Sun TV was started in 1993 from the DMK's headquarters in Chennai, Tamil Nadu. Today, it is a major network, owning 37 television channels in seven Indian languages, a Direct-To-Home broadcast service, 69 FM radio stations, three daily newspapers, six magazines, and two sports franchises. According to the notice, the company was allegedly in a healthy financial position. Citing the audited balance sheet, it said the company's reserves and surplus were ₹253 crore as of March 31, 2003. The notice added that there was no need for any external funding. Dayanidhi Maran had also sent a notice to Kalanithi in October 2024, wherein he alleged that his brother issued a "vague reply", and paid ₹500 crore to their sister Anbukarasi Maran through their mother's bank account. "This settlement and initial payment demonstrated your attempt to evade repercussions for the fraudulent activities you committed and to conceal your criminal actions. These payments have been made by you again by using the funds of M/s SUN TV Network Limited by way of dividends," the notice added. Sun TV on Friday defended Kalanithi Maran against the backdrop of the allegations levelled by Dayanidhi Maran, saying that the division between the promoter family was done 22 years ago in compliance with all legal obligations. In a regulatory filing, the network said the agreements between the two brothers had been "duly vetted" by "intermediaries" concerned before the company's public issue. The Sun TV network's regulatory filing said, "The alleged matter dates back to 22 years when the company was a closely held private limited company. Statements allegedly made in the articles are incorrect, misleading, speculating, defamatory and not supported by facts or law." "We wish to inform that all acts have been done in accordance with legal obligations and the same had been duly vetted by concerned intermediaries before the public issue of the company," it added. The Sun TV Network also clarified that reports of rift between Maran brothers "does not have any bearing on the business of the company or its day-to-day functioning".
Time of India
10 hours ago
- Business
- Time of India
Kalanithi bought 12 lakh shares for Rs 1.2 crore when value was Rs 3,500 crore: Former Union minister Dayanidhi Maran big allegation against elder brother
CHENNAI: Former Union minister Dayanidhi Maran has accused his elder brother and media baron Kalanithi Maran of acquiring 12 lakh shares of Sun TV Private Limited in 2003 for just Rs 1.2 crore, despite their actual value being around Rs 3,500 crore at the time. In a legal notice, Dayanidhi alleged that Kalanithi did so without proper valuation, consent from other shareholders, or any fair consideration — thereby unlawfully becoming the majority shareholder overnight. According to the notice, till September 15, 2003, Kalanithi did not hold a single share in the company. However, during the critical illness of their uncle Murasoli Maran in September that year, Kalanithi allegedly allotted the shares to himself at a face value of Rs 10 each, diluting the original promoters' holdings. Dayanidhi claims this act was fraudulent and a breach of fiduciary duty. The notice states that shares were transmitted from group companies just three days after Murasoli Maran's death on November 23, 2003 — even before his death certificate was issued. 'There could not have been any legitimate death certificate or legal heirship certificate available to any party on November 26, 2003,' the notice said, calling the transfer void and fraudulent. Dayanidhi has accused Kalanithi of using this control to divert company funds, including purchasing shares from their aunt Dayalu Ammal for Rs 100 crore using Sun TV's own funds. He alleges that the company's first-ever dividend was declared fraudulently in 2005 to finance this deal. If Dayalu had retained her shares, she would have earned the same amount through dividends, the notice states. He has also questioned a 2005 transaction in which 1,14,999 shares were transferred from Mallika Maran to Kalanithi at Rs 10 per share, despite Kalanithi having bought shares from Dayalu just weeks earlier at Rs 3,173.04 apiece. The notice further points to an earlier legal notice issued by Dayanidhi on October 7, 2024, which allegedly led to a Rs 500 crore payment to their sister Anbukkarasi, another legal heir of Murasoli Maran. He described the payment as an attempt to suppress the truth and prevent her from exposing 'illegal acts'. Calling for restoration of the shareholding to its original structure as on September 15, 2003, Dayanidhi warned that he would approach the Serious Fraud Investigation Office (SFIO), SEBI, Enforcement Directorate and other authorities if corrective steps were not taken within a week. He also threatened to seek cancellation of Sun TV's media licences, the Sunrisers Hyderabad IPL franchise, and SpiceJet's aviation licence. The legal notice has been sent to eight individuals, including Kalanithi Maran, his wife Kavery Kalanithi — who is accused of drawing an annual salary of Rs 87.5 crore — and several financial advisors allegedly involved in the transactions.
