DMK leader Dayanidhi Maran accuses brother Kalanithi of 'financial crimes'

Chennai, Jun 20 (PTI) DMK Lok Sabha MP Dayanidhi Maran has accused his brother Kalanithi Maran of "financial crimes," and asked him to restore the entire shareholding position of Sun TV and related companies to their original state or face legal and regulatory action.

Dayanidhi Maran alleged in a legal notice: "You and your accomplices have deliberately abused your fiduciary and professional obligations to commit a series of calculated and coordinated financial crimes." Such acts amount to white-collar criminality of the highest order and have caused irreparable loss to the legitimate stakeholders of the companies in question, Dayanidhi alleged in the notice.

The legal notice was sent to Kalanithi Maran and his wife Kaveri Kalanidhi and six others. According to the notice, these six persons, which includes the company secretary and auditor, are "close associates" of Kalanithi and his wife.

Meanwhile, Sun TV said "the alleged matter dates back to 22 years when the company was a closely held private limited company." "The statements allegedly made in the articles are incorrect, misleading, speculating, defamatory and not supported by facts or law. We wish to inform that all acts have been done in accordance with legal obligations and the same had been duly vetted by concerned intermediaries before the public issue of the Company," it said in a filing to the Bombay Stock Exchange (BSE).

The matters alleged in the articles do not have any bearing on the business of the company or its day-to-day functioning and being the family matter of the promoter are purely personal in nature, it added.

The legal notice narrated the founding and growth of Sun TV company, which began in 1985 as "Sumangali Publications Private Limited". Late DMK patriarch M Karunanidhi's wife, M K Dayalu and 'Murasoli' Maran's (SN Maran) spouse, Mallika Maran were the only two promoters of Sumangali publications. The company had always been a two-family owned entity holding 50 percent shares each, the notice said and detailed the shareholding pattern over the years.

In 1996, the name of the company was changed to Sun TV Limited, a public limited company and in 2007, it became Sun TV Network Limited. Dayanidhi accused Kalanithi of "orchestrating a deceptive, devious plan" in active conspiracy with his associates to take over the entire company and its assets for his personal benefit and that of his wife.

On September 15, 2003, a week after Maran was brought to Chennai from the US, knowing very well that he will pass away at any moment, Kalanithi allotted 12 lakh equity shares of Sun TV Private Limited to himself.

It was done without proper valuation and fair consideration, and without obtaining consent from other shareholders; the families of Maran and Karunanidhi.

"The said allotment of 12 lakh equity shares at face value of Rs 10 each on 15-09-2003, clearly constitutes and establishes your illegal act of criminal breach of trust and cheating... It is important to note till 15.09.2003, No 1 (Kalanithi) of you did not hold even a single share in the company. Suddenly overnight, No.1 of you had become a majority shareholder with controlling interest." The value of shares of erstwhile Sun TV Network Limited (earlier known as Sumangali Publications Private Limited, SUN TV Limited and SUN TV Private Limited) even in 2003 was approximately between Rs 2,500 to Rs 3,000 and hence there cannot be any allotment of shares at face value of Rs 10 each at the relevant time and the same also evidences the fraudulent allotment.

By virtue of this illegal and fraudulent allotment, Kalanithi is deriving benefits by way of dividends to the tune of a huge sum of Rs 5926 crore till 2023 and Rs 455 Crore in 2024 alone.

Dayanidhi also accused his brother of illicitly acquiring the shares of Dayalu Ammal using funds drawn from Sun TV Private Limited without providing any consideration for the said transaction. "It is also worthwhile to mention that after my client’s legal notice dated 07-10-2024, you (Kalanidhi) paid a sum of Rs 500 crore to my client's sister, Anbukarasi," the notice, sent through Dayanidhi's advocate, said.

"All of you have willfully enriched yourselves through the aforementioned fraudulent and deceitful acts in one way or the other, and are knowingly in possession of the resulting proceeds of crime," the notice said.

Also, Kalanithi maliciously diluted the genuine promoters' shareholding from 50 percent to a mere 20 percent each, thereby laying the foundation for a deliberate and criminal attempt to usurp control of the company.

"Therefore, you are hereby called upon to forthwith restore the entire shareholding position of Sun TV Network Limited and all other related companies to their original state as it stood on 15.09.2003, by reinstating the shares to the rightful owners, namely Tmt M K Dayalu and the legal heirs of late Thiru S N Maran." Also, the notice said: "Further, you and your wife Tmt. 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 Tmt M K Dayalu and the legal heirs of Thiru S N Maran." The demand is to be fully complied within 7 days, failing which, the notice said Dayanidhi would be constrained to initiate civil, criminal, regulatory, and enforcement proceedings against Kalanithi and his associates. PTI CORR VGN VGN SA