Madurai, Sept. 28 (PTI): The Madras High Court today admitted a petition seeking to revoke or suspend the licence granted to DTH provider Sun Direct TV Private Ltd.
It, however, declined to grant an interim injunction restraining the company from operating Direct To Home services under the licence granted by Information and Broadcasting Ministry.
The petitioner V M Ravichandran, a cable TV operator, contented in the Madurai Bench of the High Court that the company had violated guidelines of the government with regard to equity holdings.
He appealed to the court to direct the government to declare that the company had "violated" guidelines on equity holding and initiate steps in accordance with the law.
Admitting the petition a division bench comprising Justices P K Mishra and V M Mishra said TRAI should be the ideal authority to inquire about the violation of guidelines for DTH and cable TV.
The petitioner submitted that at the time of incorporation of SUN direct TV Pvt Ltd, Kalanidhi Maran, the applicant, was holding 96.67 per cent shares. Besides he was holding 89.90 per cent shares in Sun TV Ltd and 75 per cent share in Kal Cables Pvt Ltd. This showed that Kalanidhi Maran was having majority controlling in the DTH company, Sun TV and the cable network company, he contended.
The petitioner submitted that as per government guidelines, broad casting companies/cable network companies shall not be eligible to collectively own more than 20 per cent of the total equity of the applicant company for DTH at any time during the licence period.