Soon after the Ministry of Home Affairs struck down Information and Broadcasting (I&B) Ministry's proposal seeking clearance to 33 television channels of Kalanithi Maran-promoted Sun TV Network, its stocks slumped 26% on Monday morning.
The Sun TV shares touched a 52-week low of ₹257.45 on National Stock Exchange (NSE).
The crash was the result of refusal by the Home Ministry, which is likely to shut down the channels as it may lead to cancellation of their broadcasting license. The Network had applied for the renewal of its broadcasting license for 10 years.
The Home Ministry is said to have denied the proposal in the wake of ongoing CBI investigation against Kalanithi Maran and his brother Dayanidhi Maran in the Aircel-Maxis case and also an Enforcement Directorate case of money laundering.
The Maran brothers are facing another CBI probe for allegedly allotting 300 high-speed Bharat Sanchar Nigam Limited (BSNL) telephone lines to the residence of former Communications and Information Technology Minister Dayanidhi Maran in Chennai, which were extended to his brother's channel, PTI reports.
The Network is now dependent on Prime Minister Narendra Modi, who is the only one who can overrule MHA's decision. If not, the Maran brothers can seek legal recourse to prevent their channels from shutting down.
