Chennai: The Madras high court has set aside the orders of the Deputy Director (FM), Ministry of Information and Broadcasting, New Delhi, refusing permission on the ground that security clearance was denied to Sun TV Network, Kal Radio, South Asia FM and Udaya FM to migrate to Phase III FM regime.
Allowing petitions from these four companies, Justice M.Duraiswamy who set aside the orders dated July 15, 2015 said the petitioners were entitled to move to Phase-III policy for the FM Radio stations at Chennai, Coimbatore, Tirunelveli and Vishakapatnam by entering into Grant of Permission Agreement.
The judge also directed the Union Ministry to announce the names of the successful bidders subject to the other conditions being fulfilled by the applicants.
The Ministry denied permission on the ground that Dayanidhi Maran and Kalanidhi Maran, who were allegedly controlling the affairs of the petitioner companies, were allegedly involved in offences and therefore, refused security clearance by the agencies concerned.
Permission could not be granted to the companies, which were denied security clearance. Moreover, Tamil Nadu was a sensitive state, where the former PM Rajiv Gandhi was assassinated.
The judge said the petitioner companies were in existence from 2005. The cases against Dayanidhi Maran and Kalanidhi Maran were registered only in 2011 and therefore, the petitioner companies were not floated to camouflage any wrong in order to pierce the corporate veil. The purpose or intent behind piercing the corporate veil must be such that it would seek to remedy a wrong done by the persons controlling the company.
The petitioner companies were not alleged to be vehicles of any transgression of law and they have been functioning since 2005 without there being any allegation regarding their functioning resulting in any security concerns. “In the absence of any evidence to show that the operation of radio channels by the petitioner companies would create security concerns, the denial of security clearance by the Ministry cannot be accepted”, the judge added.
With regard to assassination of former PM Rajiv Gandhi, the judge said when the petitioners were in no way connected or involved in the case of assassination of the former PM, mentioning about the same in the reply by the Ministry was totally unwarranted and unnecessary.
