The share price of the company on the National Stock Exchange’s (NSE) Nifty, too, dropped nearly 26%, at Rs 264.80 at 10.13 am.
Home Ministry of India struck down the proposal by Information and Broadcasting Ministry for giving security clearance for SUN TV’s 33 channels.
Kalanithi Maran is the promoter of SUN TV.
This refusal to grant clearance could lead to cancellation of SUN TV’s broadcast licence.
Kalanithi and his brotherDayanidhi Maran — former Union Minister are facing criminal charges and a CBI probe over allotment of high speed telephone lines.
Apart from this, Aircel-Maxis deal and money laundering case by Enforcement Directorate are also currently pending against SUN TV and Kalanithi Maran.
This is not the first time SUN TV has been denied licences. Earlier, the company’s application for 40 FM stations were denied security clearance by Home Ministry.
The company has moved Madras High Court seeking respite from Home Ministry decision.