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Time of India
3 hours ago
- Business
- Time of India
Kalanithi bought 12 lakh shares for Rs 1.2 crore when value was Rs 3,500 crore: Former Union minister Dayanidhi Maran big allegation against elder brother
CHENNAI: Former Union minister Dayanidhi Maran has accused his elder brother and media baron Kalanithi Maran of acquiring 12 lakh shares of Sun TV Private Limited in 2003 for just Rs 1.2 crore, despite their actual value being around Rs 3,500 crore at the time. In a legal notice, Dayanidhi alleged that Kalanithi did so without proper valuation, consent from other shareholders, or any fair consideration — thereby unlawfully becoming the majority shareholder overnight. According to the notice, till September 15, 2003, Kalanithi did not hold a single share in the company. However, during the critical illness of their uncle Murasoli Maran in September that year, Kalanithi allegedly allotted the shares to himself at a face value of Rs 10 each, diluting the original promoters' holdings. Dayanidhi claims this act was fraudulent and a breach of fiduciary duty. The notice states that shares were transmitted from group companies just three days after Murasoli Maran's death on November 23, 2003 — even before his death certificate was issued. 'There could not have been any legitimate death certificate or legal heirship certificate available to any party on November 26, 2003,' the notice said, calling the transfer void and fraudulent. Dayanidhi has accused Kalanithi of using this control to divert company funds, including purchasing shares from their aunt Dayalu Ammal for Rs 100 crore using Sun TV's own funds. He alleges that the company's first-ever dividend was declared fraudulently in 2005 to finance this deal. If Dayalu had retained her shares, she would have earned the same amount through dividends, the notice states. He has also questioned a 2005 transaction in which 1,14,999 shares were transferred from Mallika Maran to Kalanithi at Rs 10 per share, despite Kalanithi having bought shares from Dayalu just weeks earlier at Rs 3,173.04 apiece. The notice further points to an earlier legal notice issued by Dayanidhi on October 7, 2024, which allegedly led to a Rs 500 crore payment to their sister Anbukkarasi, another legal heir of Murasoli Maran. He described the payment as an attempt to suppress the truth and prevent her from exposing 'illegal acts'. Calling for restoration of the shareholding to its original structure as on September 15, 2003, Dayanidhi warned that he would approach the Serious Fraud Investigation Office (SFIO), SEBI, Enforcement Directorate and other authorities if corrective steps were not taken within a week. He also threatened to seek cancellation of Sun TV's media licences, the Sunrisers Hyderabad IPL franchise, and SpiceJet's aviation licence. The legal notice has been sent to eight individuals, including Kalanithi Maran, his wife Kavery Kalanithi — who is accused of drawing an annual salary of Rs 87.5 crore — and several financial advisors allegedly involved in the transactions.
News18
5 hours ago
- Business
- News18
Sun TV Dispute: Dayanidhi Maran Sends Legal Notice To Kalanithi Over ‘Fraudulent' Takeover
Last Updated: A simmering rift in the Maran family, which controls the Sun Group, has now erupted into public view; Know details Sun Group Family Feud: A simmering rift in the Maran family, which controls the Sun Group, has now erupted into public view, according to people familiar with the matter. DMK lawmaker and former Union minister Dayanidhi Maran has issued a legal notice to his elder brother, Kalanithi Maran—Chairman and Managing Director of the Rs 24,000-crore Sun TV Network—accusing him of fraudulently taking control of the company through a contested share allotment in 2003. He has called for the restoration of the company's shareholding structure to its pre-September 2003 status, a time when the Maran family and the family of the late M Karunanidhi held equal stakes. Karunanidhi, the late chief minister of Tamil Nadu and former head of the DMK, passed away in 2011. His son, MK Stalin, is the current chief minister. If this dispute moves to court, it would pit Kalanithi not only against his brother Dayanidhi but also against the Karunanidhi family, with control of the media powerhouse hanging in the balance. Sun TV, the dominant Tamil-language broadcaster, wields considerable influence in Tamil Nadu and is widely seen as having benefited from its closeness to the ruling party. Shareholding Increased to 60% In the legal notice issued through his lawyer, K Suresh, Dayanidhi alleges that Kalanithi unilaterally allotted himself 1.2 million equity shares on September 15, 2003, without obtaining proper valuation, shareholder consent, or board approval. While the shares were issued at a face value of Rs 10 each, Dayanidhi contends they were worth approximately Rs 3,500 crore at the time, given that Sun TV was a cash-rich and profitable company. The timing of this alleged transaction coincided with the death of their father, former Union minister Murasoli Maran. Dayanidhi argues that Kalanithi exploited this period of family grief to quietly raise his stake in Sun TV from zero to 60%, all without informing or consulting other key stakeholders—most notably MK Dayalu, the wife of M Karunanidhi and the Karunanidhi family's representative. Notably, Murasoli Maran was Karunanidhi's nephew. According to the legal notice, Kalanithi's shareholding surged to 60%, while the holdings of other legitimate shareholders were diluted to 20% each. Money Matters Dayanidhi further claims that this disputed allotment has since enabled Kalanithi to earn over Rs 5,926 crore in dividends up to 2023, and an additional Rs 455 crore in 2024 alone. He also alleges that Kalanithi and his wife, Kaveri, along with close associates, misused these 'proceeds of crime" to acquire a string of high-value businesses and assets. These include Sun Direct TV, Kal Radios, Sun Pictures, South Asian FM, and the IPL cricket team Sunrisers Hyderabad. The notice adds that more than Rs 8,500 crore worth of investments were made in domestic and overseas mutual funds and real estate investment trusts (REITs). Dayanidhi has demanded that all shares, assets, and monetary benefits accrued since 2003 be returned to the original shareholders within seven days. If the demand is not met, he has stated his intent to initiate civil, criminal, and regulatory proceedings. He also plans to escalate the matter to the Serious Fraud Investigation Office (SFIO), the Ministry of Information & Broadcasting, and the Board of Control for Cricket in India (BCCI), seeking the cancellation of Sun TV's broadcast licences and the revocation of ownership rights to the Sunrisers Hyderabad IPL team. Additional Allegations Dayanidhi's legal notice includes further allegations, such as the illegal transfer of shares from their late father to their mother—and eventually to Kalanithi—without the consent of the legal heir. He has also accused Kalanithi of manipulating IPO filings through misleading disclosures and alleges that company auditors and officials were complicit in facilitating the fraud. The notice recalls that Kungumam Publications, founded in 1978, was incorporated with equal ownership by both families. Dayanidhi emphasizes that the founding vision for all the Maran group companies was to maintain 50:50 shareholding between the two families. Kalanithi Maran launched Sun TV in Tamil in 1993 and expanded it into a vast media empire spanning multiple regional channels and a film production business. Industry observers point out that this growth was significantly aided by the company's proximity to the political establishment in Tamil Nadu. tags : Sun TV Location : New Delhi, India, India First Published: June 20, 2025, 07:39 IST News business Sun TV Dispute: Dayanidhi Maran Sends Legal Notice To Kalanithi Over 'Fraudulent' Takeover
Time of India
7 hours ago
- Business
- Time of India
Dayanidhi says Brother Seized Group Control ‘Fraudulently'
A simmering rift in the Maran family that owns the Sun Group is out in the open, said people with knowledge of the matter. DMK lawmaker and former Union minister Dayanidhi Maran has sent a legal notice to older brother Kalanithi Maran , who is chairman and managing director of the ₹24,000-crore Sun TV Network , accusing him of fraudulently seizing control of the company through a disputed share allotment in 2003. 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. Karunanidhi, who died in 2011, was head of the DMK and chief minister of Tamil Nadu. His son MK Stalin is current chief minister. If the dispute goes to court, it will pit Kalanithi against his brother and the Karunanidhi family, with control of the media giant at stake. As the dominant channel in Tamil Nadu, Sun TV is highly influential and regarded as having benefited from its proximity to the ruling party. In the notice, sent through his lawyer K Suresh, Dayanidhi alleges that his brother allotted 1.2 million equity shares to himself on September 15, 2003, without proper valuation, shareholder approval or board resolutions. 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. The Maran brothers didn't respond to queries. Lawyer Suresh did not offer any comment. As per the legal notice, Kalanithi's shareholding increased to 60%, while the shareholding of other legitimate stakeholders was diluted to 20% each. 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. Investments were allegedly also made in domestic and international mutual funds and REITs (real estate investment trusts) worth over Rs 8,500 crore. Dayanidhi has demanded that all shares, assets and financial benefits obtained since 2003 be returned to the original shareholders within seven days, failing which he will initiate civil, criminal and regulatory proceedings. The younger brother also plans to escalate the matter to the Serious Fraud Investigation Office (SFIO), the ministry of information & broadcasting, as well as the Board of Control for Cricket in India (BCCI), seeking cancellation of broadcasting licences and ownership rights to Sunrisers Hyderabad. Dayanidhi further alleged illegal transfer of shares from their deceased father to their mother — and subsequently to Kalanithi —without the legal heir's consent; misuse of initial public offer filings through misleading disclosures, and complicity of auditors and company officials in facilitating the fraud. The MP also claimed that the two families incorporated Kungumam Publications in 1978 with both families having an equal shareholding. He also said the intention behind founding all the companies by the original promoters was to have 50% stakes in each of the businesses for both families. 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, industry watchers said.
Time of India
12 hours ago
- Business
- Time of India
Dayanidhi Maran accuses brother Kalanithi of fraud
Dayanidhi Maran CHENNAI: In a high stakes dispute, former Union minister Dayanidhi Maran has sent a legal notice to his elder brother Kalanithi Maran , accusing him of flouting all rules and transferring to himself lakhs of shares of the Chennai-based Sun TV group, which are worth thousands of crores of rupees. Kalanithi Maran had derived Rs 5,926 crore as dividends till 2023 and another Rs 455 crore in 2024, Dayanidhi said. 'The offences committed by you are continuous in nature and continue as on date,' he added. Sun TV Network Ltd reported a turnover of Rs 4,544 crore for FY2024-25 and a net profit of Rs 1,654.45 crore. Dayanidhi Maran has threatened to approach SFIO, SEBI, ED and other statutory organisations to initiate civil, criminal, regulatory and enforcement proceedings against Kalanithi Maran and his associates, including his wife Kaveri Kalanithi, unless they restored the M/s SUN TV Network Limited and all related companies to their original state as on Sep 15, 2003, by reinstating the shares to the rightful owners — M K Dayalu Ammal, wife of late CM M Karunanidhi, and the legal heirs of late S N Maran (Murasoli Maran) within a week. Dayanidhi said he would seek shutting down of the two dozen-odd satellite channels of Sun group, radio channels, newspapers and other businesses. He also warned that he will approach Board of Control for Cricket in India (BCCI) to cancel the franchise licence of Sunrisers Hyderabad and approach DGCA to cancel the operational licence of SpiceJet Ltd. Recalling how the original parent entity — M/s Sumangali Publications Private Limited — had only M K Dayalu Ammal and Mallika Maran, wife of Murasoli Maran, as promoters, Dayanidhi said they held 50% shares each on Dec 12, 1985, the date of incorporation. When Murasoli Maran was critically ill in Sept 2003, and when it was clear he would pass away any moment, Kalanithi Maran allotted 12 lakh equity shares of M/s SUN TV Private Limited to himself without sufficient, proper valuation and fair consideration, and without obtaining consent from all other existing shareholders — the family of Maran and the family of Karunanidhi — at a face value of Rs 10 each, t said. '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,' Dayanidhi said of Kalanithi Maran. Though Murasoli Maran died on Nov 23, 2003, and his death certificate was issued only on Feb 20, 2004, Kalanithi transmitted the shares from group companies on Nov 26, 2003, itself. The family of Murasoli Maran had a rightful and legally enforceable claim over 2,85,000 equity shares in the then M/s SUN TV Private Limited. 'Therefore, there could not have been any legitimate death certificate or legal heirship certificate available to any party on Nov 26, 2003. Therefore, the alleged transmission purported to have occurred on Nov 26, 2003, is not only void, but also a fraudulent activity on your part,' Dayanidhi's notice said. At the time of the fraudulent and illegal transmission, there was no administrator, no executor and no holder of a succession certificate in existence, it said. 'It is not only peculiar but deeply alarming and outrageous that Kalanithi Maran, an individual who held no shares whatsoever as on Sept 15, 2003, while merely occupying the position of chairman cum managing director, abused position and authority to orchestrate a fraudulent and premeditated scheme, in gross breach of fiduciary duty, and in criminal collusion with others, and executed a deceitful and manipulative plan by unlawfully allotting to yourself an exorbitant quantity of 12,00,000 equity shares at a mere face value of Rs 10 each. This criminal act had resulted in an illegal bonanza and fraudulent creation of shareholding for Kalanithi Maran from 0% to 60%. Whereas, on the other hand, you maliciously and intentionally diluted the genuine promoters' shareholding from 50% to a mere 20% each, thereby laying the foundation for a deliberate and criminal attempt to usurp control of the company for your self-serving and unlawful objectives,' said Dayanidhi Maran's legal notice to his elder brother. Noting that Kalanithi Maran purchased 12 lakh shares at the rate of Rs 10 per share, for a total consideration of Rs 1.2 crore, Dayanidhi Maran said the value of the shares at that time was Rs 3,500 crore. The remaining Rs 3,498.8 crore, therefore, is the proceeds of crime, the notice said. On Dec 16, 2005, the shareholding of 1,14,999 equity shares was illegally transferred from Mallika Maran to Kalanithi Maran, the notice said, adding that no approval or knowledge of other legal heirs was obtained for the transfer. It was bought for Rs 10 per share, though Kalanithi himself had purchased shares from Dayalu on Oct 28, 2005, at the rate of Rs 3,173.04 per share. Explaining how the shares held by Dayalu Ammal were undervalued and purchased from her for Rs 100 crore by deceit, Dayanidhi Maran said: 'You illicitly acquired the shares of Dayalu using funds drawn from M/s SUN TV Private Limited, without providing any consideration for the said transaction. From the company's inception, no dividends were ever declared until 2005. The declaration of a dividend was made unilaterally and fraudulently by you, solely to make payment towards purchase of shares from Dayalu. By virtue of the aforesaid fraudulent actions, you have also committed a significant deception against Dayalu. If at all the shares had not been transferred from her name, she could have received the full amount of Rs 100 crore through dividends alone while retaining her existing shareholding.' This is not Dayanidhi Maran's first legal notice to Kalanithi Maran. On Oct 7, 2024, he had issued a notice, which elicited 'a vague reply without any particulars'. However, following that notice, Kalanithi paid Rs 500 crore to his sister Anbukkarasi, who too is a legal heir of senior Maran, towards part of a settlement and initial payment. 'These payments made to your sister, after a lapse of 21 years from the death of our father, are nothing but an attempt to suppress the truth and to silence her from revealing the illegal acts committed by you,' said the notice. Referring to Kaveri Kalanithi's hefty salary, Dayanidhi Maran said she unjustly enriched herself by getting Rs 87.5 crore per annum as salary. 'This shows your devious operation in swindling and looting the company money,' he said, adding: 'You and your wife Kaveri Kalanithi are directed to return, without delay, the entirety of the monetary benefits, dividends, assets and all forms of income unlawfully received or appropriated by you from the year 2003 till date, to Dayalu and the legal heirs of (Murasoli) Maran. ' The notice was served to Kalanithi Maran, Kaveri Kalanithi, Ravi Ramamoorthy, Natarajan Sivasubramanian (chartered accountant), Sridhar Swaminathan (financial consultant), Swaminathan and Sharad Kumar.
Mint
15 hours ago
- Business
- Mint
Maran vs Maran: Dayanidhi challenges billionaire brother Kalanithi over Sun TV ownership
A family dispute has erupted at India's largest listed media entity Sun TV Networks Ltd, with former telecom minister Dayanidhi Maran crossing swords with billionaire brother Kalanithi Maran. In a legal notice, Dayanidhi, a member of Parliament from the Dravida Munnetra Kazhagam (DMK), accused his brother and several others of "fraudulent practices" and "misgovernance" in taking control of Sun TV after their father Murasoli Maran's death in 2003. Dayanidhi also sought to restore Sun TV's 2003 shareholding structure. This implies that Dayanidhi and his sister, Anbukarasi Maran, along with current chief minister of Tamil Nadu, M.K. Stalin, and his two brothers and sister, would be the owners of Sun TV, as Kalanithi did not own any shares in the company 22 years ago. Dayanidhi warned that he would seek a probe by the Serious Fraud Investigation Office (SFIO) of the Ministry of Corporate Affairs if his brother refuses to comply. "All of you have fraudulently brought down the shareholding of my client's parents from 50% to 1 single share whereas No.1 (Kalanithi) of you being an ex-employee who did not even own one share is now holding more than 75% shareholding of the company, without even employing any of your self earned money," said a notice, dated 10 June, sent by K. Suresh, a lawyer representing Dayanidhi Maran, to eight executives. Mint has seen a copy of the notice. Seven other executives served with the legal notice are Kalanithi's wife and Sun TV executive Kaveri Kalanidhi, compliance officer Ravi Ramamoorthy, two chartered accountants and other financial executives. Dayanidhi also claims in the legal notice that their father died intestate, that is, without leaving a will. Dayanidhi, 58 and Kalanithi, 60, are sons of former Union minister Murasoli Maran and the grandnephews of M. Karunanidhi, former chief minister of Tamil Nadu. Their uncle Stalin is the current chief minister of Tamil Nadu and the president of DMK. Also read | Mint Explainer: What sparks family feuds in Indian corporations? The legal notice The legal notice said Sun TV, founded in 1985, had two shareholders: Karunanidhi's second wife M.K. Dayalu, and Murasoli Maran's wife Mallika Maran. Kalanithi owns 75% of Sun TV, which had a market capitalization of ₹24,356.4 crore at the end of Thursday's trading. According to Forbes, Kalanithi is estimated to be worth $2.9 billion. "In order to take over the entire company and its assets for the personal benefit of No.1 (Kalanithi Maran) & 2 (Kaveri) of you, No.1 of you orchestrated a deceptive and devious plan in active conspiracy with No.2 to 8 of you. 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, that he could pass away at any moment and the entire family was concerned about his deteriorating health, No.1 of you and No.2 of you commenced your first illegal activity in September 2003," said the legal notice. "With a sinister and premeditated intent to unlawfully eliminate the legitimate rights and interests of the other family stakeholders and to clandestinely usurp absolute control over the said corporate entities, No.1 (Kalanithi Maran) of you have orchestrated the falsification of company records and manipulated statutory registers to create an illusion that the said equity shares were transferred and acquired by No.1 of you at a paltry Rs.10/- per share on 10.11.2005," it added. "It is very unfortunate," an executive privy to the development said, adding, "It is a private family matter. Since a legal notice about some properties has been sent, I'm sure Kalantihi will respond accordingly". "This has been simmering for a long time now, " said a second executive, adding that Dayanidhi and Kalanithi had reportedly not spoken to each other for several years. Text messages and calls to Dayanidhi and Kalanithi went unanswered. Dayanidhi's lawyer Suresh did not respond to texts and calls. Also read | Another business patriarch turns to trusts to ringfence family wealth. But is trust good enough? Family fueds Dayanidhi is a four-time member of Parliament, having won from Chennai Central constituency in 2024, and has also served as telecom minister between 2004 and 2007. Sun TV claims to be the country's largest listed media conglomerate, with 37 TV channels, 69 radio stations, and three daily newspapers, including the Tamil daily Dinakaran. Its film division Sun Pictures owns the SunRisers Hyderabad team in the Indian Premier League. According to an executive, SunRisers Hyderabad is valued at ₹17,000 crore or $2 billion. Sun TV ended last year with ₹4,712.6 crore in revenue, 1.6% lower than ₹4787.1 crore at the end of March 2024. Profit fell 11.5% to ₹1703.1 crore. This latest family dispute comes after earlier this year, politician and real estate businessman Mangal Prabhat Lodha's two sons, Abhishek and Abhinandan, clashed in court over a disagreement about using the Lodha brand name. After nine rounds of court-appointed mediation and hectic parleys between a battery of lawyers, the two warring brothers finally forged a truce last month. Also read | Lodha versus Lodha: How a family agreement brought the Lodha brothers to battle
