Sun TV and Spicejet shares slammed as 2G scam engulfs Marans

Shares of Sun TV Network Ltd. and SpiceJet Ltd. were pummeled on Thursday amid media reports that the CBI probe into the multi-billion-dollar 2G scam could be extended to the Maran family. Apparently, a PIL was filed to direct the CBI to probe alleged irregularities committed by Textiles Minister and DMK leader Dayanidhi Maran when he was the Telecom Minister in the UPA's first term. The application was filed by advocate Prashant Bhushan for NGO 'Centre for Public Interest Litigation'. CBI said that the agency was already investigating the matter.



The reports said that Dayanidhi Maran granted 14 licences to Aircel in return for investments from Malaysia's Maxis Communications in Sun Direct. The report said that he cleared the decks for the Aircel license only after Maxis' sister company invested Rs 6bn in Sun Direct. The Marans and the Sun group of companies are said to have benefited from kickbacks paid by the Malaysian company in return for spectrum allocation in its favour during Dayanidhi Maran's tenure as Telecom Minister.

The DMK leader, however, denied the allegations. He also slapped a legal suit against publications that leveled the charges. His legal counsel said that C Sivasankaran, promoter of Aircel, wanted to sell his company since 2004. He also said that Maran had no share holding or interest in any form in Sun Direct TV and was in no way connected with any of its business transactions.

Sterling Group Chairman Sivasankaran is likely to appear before the CBI next week to record his statement on the circumstances under which he sold Aircel to Maxis, owned by Malaysian businessman T Ananda Krishnan.

Meanwhile, Sun TV Network Ltd. said that over the last few days and more particularly on June 2, there has been a steep fall in the prices of the Company's shares possibly triggered by baseless allegations and rumors linking the Company with certain happenings relating to the 2G scam. "We wish to inform that Sun TV Network Limited and Mr. Kalanithi Maran do not have any relationship whatsoever to any of these happenings," it said. Sun TV also denied the allegation of its usage of 323 lines of BSNL, which were said to have been routed through the residence of Mr. Dayanidhi Maran.

The shares of Sun TV rallied almost 14% in early trades on Friday before closing down by 4% at Rs 283. It touched a 52-week low of Rs 260 on Thursday. Spicejet too recovered from the previous day's slump. It rose as much as 8.6% early on Friday before ending 2% higher at Rs 35. It had hit a 52-week low of Rs 33.50 on Thursday.