Dayanidhi Maran Sends Legal Notice To Sun TV Chairman Kalanithi Maran, Alleges 'Fraudulent Takeover'

DMK MP Dayanidhi Maran has issued a legal notice to his elder brother and Sun TV Network Chairman and Managing Director Kalanithi Maran, alleging a fraudulent takeover of the group following the death of their father, Murasoli Maran, in 2003. The notice also named Kalanithi's wife — Kavery Kalanithi — and six others.

The legal notice accused Kalanithi Maran and the others of fraudulent practices, mismanagement, and breach of trust in acquiring control of Sun TV. Dayanidhi Maran has also threatened to seek a probe by the Serious Fraud Investigation Office. The development sent Sun TV Network Ltd.'s shares sliding by as much as 5%.

The core of the dispute lies in the alleged misappropriation of shares and misgovernance in the Sun TV group after the death of Murasoli Maran, who, according to the notice, died intestate.

The notice claimed that the rightful shareholding structure should be based on the 2003 shareholding, which would include Dayanidhi Maran, their sister, and Tamil Nadu Chief Minister MK Stalin.

“In order to take over the entire company and its assets for personal benefit… you orchestrated a deceptive and devious plan in active conspiracy,” the notice says.

“As part of executing your premeditated fraudulent scheme, taking advantage of the family’s situation, especially when my client’s father’s health was critically ill, and he could pass away at any moment and the entire family was concerned about his deteriorating health… you commenced your first illegal activity in September 2003,” it adds.

The notice alleges that Kalanithi Maran did not hold any shares in Sun TV until mid-September 2003. “You did not hold any shares in the said company, and it was not Late Thiru SN Maran’s intention to allot any shares to you during his lifetime, particularly while he was in good health,” it says.

It further claimed that Kalanithi Maran allotted 12 lakh equity shares to himself just seven days after SN Maran was brought to Chennai from the United States. “You allotted 12 lakh equity shares of Sun TV to yourself without sufficient, proper valuation and fair consideration and without obtaining consent from all other existing shareholders,” the notice said.

The notice adds, “You allotted 60% of the shares of Sun TV without any consultation or approval from the existing majority/promoter original shareholders at a face value of Rs 10 each… Even in 2003, the value… was approximately between Rs 2,500 and Rs 3,000, and hence there cannot be any allotment of shares at a face value of Rs 10 each at the relevant time.”

According to the notice, Sun TV was in a “healthy financial position” in 2003 with Rs 253 crore in cash reserves. “In other words, the company had absolutely no need for any external funding, either by way of private loan or by way of equity infusion. Till Sept. 15, 2003, you did not hold even a single share in the company. Suddenly overnight, you had become a majority shareholder with controlling interest.”

Sun TV Network responded to media reports regarding a control dispute within the promoter family, stating in an exchange filing that all actions taken were in accordance with legal obligations.

It termed the reports as incorrect, misleading, speculative, and not supported by facts or law. Sun TV added that all actions were duly vetted by the concerned intermediaries before the company’s public issue.