The Madras High Court set aside orders of the Ministry of Information and Broadcasting on July 15, 2015, denying opportunity to Sun TV Network and group companies to participate in the phase III FM radio auction owing to denial of security clearance. The Court allowed Sun TV Network and Udaya FM to move to the phase III policy FM radio stations in four cities.

In his order today, Justice M Duraiswamy directed the Ministry to announce the name of successful bidders subject to the other conditions beng fulfilled by the appicants.

"...the impugned orders dated 15.7.2016 denying the security clearance of the petitioner are liable to be set aside. Accordingly the same are set aside," said the order.

In an earlier interim order, the court has earlier allowed the petitioner companies to participate in the tender and submit their bids and the result of the bid was subject to the final order. The government submitted the bids in a sealed cover before the court, which the court returned for announcement of results subject to the other conditions.

Sun TV Network and Udaya FM were ordered as entitled to move to Phase III policy for the FM radio stations at Chennai, Coimbatore, Tirunelveli and Vishakhapatinam by entering into Grant of Permission Agreement (GPA), since the Ministry's order on July 15, 2015 was set aside.

On July 15, 2015, the ministry published a list of broadcasters, who are permitted to migrate from Phase II to Phase III, in which the Sun TV Network companies were not mentioned. The names did not figure in the list for denial of security clearance from the Ministry of Home Affairs.

The clearance was denied in connection to the investgation against the promoter Kalanithi Maran and his brother Dayanithi Maran, related to the Aircel-Maxis deal, since prosecution for major financial frauds and corruption are ground for denial in terms of national security clearance policy of the Ministry of Home Affairs.

Click here to read the full story.