When Jayalalitha-led AIADMK came to power in Tamil Nadu, investors were worried that the Sun TV group’s stranglehold on some of the businesses like cable TV and film distribution could be shaken. Kalanithi Maran, the owner of Sun TV Network, is brother of senior DMK leader and former telecommunications minister Dayanidhi Maran.
The arrest of Sun Pictures CEO Hansraj Saxena on Sunday for allegedly cheating a film distributor of around Rs 83 lakh, proves that investor concerns may not have been off the mark.
At 10:35 am Sun TV shares were down 4% to Rs 344. The stock has not fully recovered from the beating it took in May, following reports that the Sun TV group had benefitted from the decision of the then telecom minister Dayanidhi Maran’s decision to allot telecom licences to the Aircel group.
Sun Pictures, the movie production arm of Sun TV Network has been often accused of bullying film makers for distribution rights to the movies. That, experts tracking the Sun TV stock say, may no longer be possible under the AIADMK regime.
“The amount involved is not very large, but it is a clear indication that the (state) government will be quick to act on any complaints against that (Sun) group,” said a trader tracking the Sun stock.