Maran brothers clash: Legal battle rocks sun TV network, triggering a stock market drop
Dayanidhi Maran files a legal notice against kalanithi maran over alleged fraudulent practices and financial irregularities, Demanding shareholding restoration and prompt regulatory probe
Mumbai: Shares of Sun TV Network Limited dropped over 5 per cent on Friday morning following a legal dispute within the Maran family, as DMK MP and former telecom minister Dayanidhi Maran sent a legal notice to his elder brother, Kalanithi Maran, the company’s Chairman and Managing Director. The notice accuses Kalanithi of “fraudulent practices” and “misgovernance” during the takeover of Sun TV, alleging a series of calculated and coordinated financial crimes including cheating and money laundering, and warning of potential probes by agencies such as the Serious Fraud Investigation Office (SFIO).
The legal notice centers on the dispute over the shareholding structure that emerged after their father, Murasoli Maran, died in 2003 without leaving a Will. It demands that the company’s shareholding be restored to the levels of 2003 and calls for investigations by SEBI, RBI, SFIO, Enforcement Directorate (ED), and the Registrar of Companies (ROC).
Following the announcement of these developments, Sun TV’s stock fell as much as 5.25 per cent to Rs 580 during early trade, though losses later trimmed to trade 3.41 per cent lower at Rs 591. Over the past 12 months, Sun TV shares have declined by 23.7 per cent, and they are down nearly 13.9 per cent so far this year. Kalanithi Maran currently holds a 75 per cent stake in the company, which has a market capitalisation of Rs 24,124 crore.
Sun TV Network, which runs television channels in seven languages including Tamil, Telugu, Hindi, and Bengali, also operates FM radio stations across India and owns sports franchises such as the IPL team Sunrisers Hyderabad and Sunrisers Eastern Cape in South Africa’s T20 league. The company’s financial performance has faced pressure, with a 10.4 per cent fall in consolidated Profit After Tax to Rs 371.77 crore in the March quarter (Q4 FY25) and a 2.15 per cent decline in revenue from operations to Rs 940.59 crore compared to Rs 961.28 crore in Q4 FY24.
