Sun TV Dismisses Allegation Against Maran As “Incorrect”, Not To Affect Company’s Functioning
Dayanidhi has also alleged that the Kalanithi side of the family used the illegal dividends it received from Sun TV to get into other business ventures including SpiceJet and Sunrises Hyderabad (SRH): Reports
CHENNAI: Sun TV Network has dismissed the serious allegations of fraudulent transactions levelled against its chairman Kalanithi Maran by his brother and DMK MP Dayanidhi Maran as “incorrect and defamatory” while stating that it does not have any bearing on the business of the company. The shares of the company fell over 5 per cent on Friday following the reports.
Reports based on a 46-page legal notice against Kalanithi Maran had alleged that in September 2003 had illegally allotted 12 lakh shares of Sun TV to himself at a face value of Rs 10 per share, without any valuation exercise or consent from existing shareholders. This changed the shareholder dynamics of the company completely.
Dayanidhi has also alleged that the Kalanithi side of the family used the illegal dividends it received from Sun TV to get into other business ventures including SpiceJet and Sunrises Hyderabad (SRH).
Dayanidhi has claimed that these fraudulent financial transactions were not fully disclosed in the Initial Public Offering (IPO).
Reacting to the reports, the shares of the company fell 5.25 per cent on Friday to Rs 580 per piece, steepest fall since April.
In a communique issued to the stock markets, Sun TV said that the alleged matter dates back to 22 years when the company was a closely held private limited company. “The statements allegedly made in the articles are incorrect, misleading, speculative, 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 said.
The matters alleged in the articles do not have any bearing on the business of the company or its day-to-day functioning and being the family matter of the promoter are purely personal in nature.
“We are not aware of any negotiations/ events towards settlement in the promoter's family and to the best of our knowledge, there are no events/information that are material or required to be disclosed under Regulation 30 of the Listing Regulations which may have a bearing on the operations or performance of the company,” it added.
