Sun TV says dispute with Dayanidhi Maran over shareholding has been resolved

Sun TV Network Limited has informed the stock exchanges that a legal dispute involving its promoter’s family has been resolved, with all related notices withdrawn..The company stated it has now been informed by the promoter that “all the legal notices issued by the family member…have been unconditionally and irrevocably withdrawn” and that “the issues hereby stand resolved.”Sun TV reiterated that both the issuance and withdrawal of the notices are unrelated to its business or daily operations, adding that they are “purely personal in nature.”.The earlier legal notice, sent by Lok Sabha MP and former Union Minister Dayanidhi Maran to his elder brother and Sun Group Chairman Kalanithi Maran, alleged large-scale fraud in the allotment and transfer of shares in Sun TV Network and affiliated companies since 2003.The notice accused Kalanithi Maran and seven others of orchestrating fraudulent transactions to secure a controlling interest in the broadcaster, including illegal share allotments, manipulation of company records, undervaluation of share transfers and misuse of company funds.According to the allegations, Kalanithi Maran was allotted 12 lakh equity shares on September 15, 2003 - representing a 60% stake - at a face value of ₹10 each, despite their purported market value exceeding ₹3,000 per share. Dayanidhi Maran 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 notice also alleged that dividends declared in 2005 were used to buy out the 50% stake of M K Dayalu, wife of former Tamil Nadu Chief Minister M Karunanidhi, and to enrich select associates, including Joint Managing Director Kaveri Kalanithi. It accused certain professionals, including the company’s auditor, financial consultant and company secretary, of aiding in the transactions and concealing irregularities..Dayanidhi Maran had demanded restoration of the shareholding structure as on September 15, 2003, repayment of dividends and reversal of other financial benefits, threatening legal action under the Indian Penal Code, Companies Act, SEBI Act, and the Prevention of Money Laundering Act. He had also indicated plans to approach the Serious Fraud Investigation Office (SFIO), the Enforcement Directorate (ED), the Registrar of Companies, SEBI and other regulators, and to seek cancellation of broadcasting, publishing and aviation licences held by entities owned or controlled by Kalanithi Maran.With the latest disclosure, Sun TV has confirmed that the matter has been settled privately, and that it had no bearing on the company’s governance or operations..Read Exchange Filing