Several media reports claimed that Dayanidhi had sent a legal notice to Kalanithi accusing him of fraudulently seizing control of the company through a disputed share allotment in 2003.
The reports said he has demanded restoration of the company’s shareholding structure to its pre-September 2003 status, when the Maran family and that of the late M Karunanidhi owned equal shares in the company.
Sun TV in a statement 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, speculating, 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.,” Sun TV said.
“The matters alleged in the articles does 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,” the company added. The shares of the company rose 3 per cent from lows after the statement.
What the news reports claimed
According to news reports, in the notice, sent through his lawyer K Suresh, Dayanidhi alleged that his brother allotted 1.2 million equity shares to himself on September 15, 2003, without proper valuation, shareholder approval or board resolutions.
The reports claim that at face value, the shares were priced at Rs 10 each, but the younger Maran claims they were worth approximately Rs 3,500 crore at the time, as Sun TV was a cash-rich and profitable entity.
The timing of the alleged transaction coincided with the death of the brothers’ father, former Union minister Murasoli Maran.
Dayanidhi’s contention is that Kalanithi used this opportunity to gain 60% control in the company, up from zero. without informing or consulting the other key stakeholder, MK Dayalu, wife of Karunanidhi, who was representing the family.
Murasoli Maran was Karunanidhi’s nephew.
As per the legal notice, Kalanithi’s shareholding increased to 60%, while the shareholding of other legitimate stakeholders was diluted to 20% each.
The reports further claim that Dayanidhi claims the allegedly fraudulent allotment allowed Kalanithi to earn over Rs 5,926 crore in dividends till 2023, and Rs 455 crore in 2024 alone, apart from additional gains from bonus share allotments.
He further accused Kalanithi and his wife, Kaveri, along with other associates, of misusing these “proceeds of crime” to acquire valuable businesses and assets, including Sun Direct TV, Kal Radios, Sun Pictures, South Asian FM and the Indian Premier League (IPL) franchise, Sunrisers Hyderabad.
The reports suggested that investments were allegedly also made in domestic and international mutual funds and REITs (real estate investment trusts) worth over Rs 8,500 crore.
Kalanithi started the Tamil Sun TV channel in 1993 and built it into a sprawling media giant, encompassing multiple TV channels in south Indian languages as well as a film production house, taking advantage of connections with the state establishment.
