Old Feud, New Buzz: Sun TV Distances Business from Personal Dispute, Assures Markets Amid Family Flare-Up

Sun TV Network Ltd. (SUTV.NS) on Friday released a forceful denial of allegations made in recent media reports linked to a legal dispute between its promoter family members. The firm explained that the matter is personal in origin, has been going on for over two decades, and has nothing to do with its day-to-day business now or its financial performance.

 

The clarification comes after DMK MP and ex-Union Minister Dayanidhi Maran sent a legal notice to his elder brother Kalanithi Maran, Managing Director and Chairman of Sun TV, for alleged fraudulent allotment of shares and financial irregularities since 2003. The notice accuses Kalanithi and seven others, including his wife, of hatching a conspiracy to acquire control of the company when their father Murasoli Maran was seriously ill2.

 

In its explanation, Sun TV Network stated that the allegations are unsubstantiated, historical, and are being twisted by the media. The company once again asserted that it continues to operate with good corporate governance and that its business operations on a day-to-day basis are not impacted by the ongoing family feud.

 

Sun TV shares fell over 4% during early trade on June 20 due to investor worry over the high-profile controversy3.

 

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Sources: Goodreturns, Moneycontrol, Exchange4Media, Business Standard, The Hindu BusinessLine