Sun TV legal battle between Kalanithi, Dayanidhi Maran explained

A family dispute has erupted within the Maran family, threatening the stability of Chennai-based Sun TV Network Ltd, one of India’s leading media conglomerates.

DMK MP and former Union Minister Dayanidhi Maran has issued a legal notice accusing his elder brother, Kalanithi Maran, Sun TV's Chairman and Managing Director, of orchestrating a fraudulent takeover through questionable share allotments dating back to 2003.

The notice, issued on June 10 by Chennai-based advocate K Suresh of Law Dharma, also names Kalanithi’s wife, Kavery, and six close associates, alleging a coordinated scheme to seize control of Sun TV during a period of family vulnerability.

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With demands for share restoration and threats of criminal and regulatory action, this feud could reshape the future of the Sun TV empire and its ties to Tamil Nadu’s ruling DMK party. Dayanidhi’s close ties with Tamil Nadu Chief Minister MK Stalin, his first cousin once removed, add a sensitive political dimension, potentially complicating dynamics within the DMK, which has long been intertwined with the Sun TV empire.

Here is a detailed look at how the fight erupted.

Sun TV’s rise

The Maran family, a powerhouse in Tamil Nadu’s political and business landscape, co-founded Sun TV Network Ltd (originally Sumangali Publications Pvt Ltd) in 1985 with MK Dayalu, wife of late DMK patriarch M Karunanidhi, and Mallika Maran, wife of late Union Minister Murasoli Maran.

Initially a 50-50 partnership between the Karunanidhi and Maran families, the company grew into a media juggernaut, operating 33 television channels, radio stations (Suryan FM, Red FM), newspapers (Dinakaran), and media-adjacent ventures such as Sun Pictures and Sun Direct TV. Sunrisers Hyderabad is also owned by the Sun Group. Low-cost airline SpiceJet, which is linked to Kalanithi Maran, however, is not linked to Sun TV.

With a market cap of Rs 24,000 crore, Sun TV remains a dominant force in South India’s media landscape.

Murasoli Maran's death

The dispute centres on events following Murasoli Maran’s prolonged illness and death in November 2003. Kalanithi is alleged to have manipulated share transactions to gain majority control, sidelining his brother Dayanidhi, sister Anbukarasi, and co-promoter Dayalu.

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The 70-paragraph legal notice levels grave charges of fraud, criminal breach of trust, forgery, and money laundering against Kalanithi Maran, Kavery Kalanithi, and associates, including company secretary Ravi Ramamoorthy, former finance head Natarajan, chartered accountant Sivasubramanian, and financial consultants Sridhar Swaminathan, Swaminathan, and Sharad Kumar.

Following are the key allegations:

Fraudulent share allotment (2003): The notice alleges that on September 15, 2003, days after Murasoli Maran was brought to Chennai in coma, Kalanithi allotted himself 12 lakh equity shares (60 per cent of Sun TV) at a face value of Rs 10 per share, totalling Rs 1.2 crore.

Dayanidhi claims these shares were worth Rs 2,500–3,000 each, implying a market value of Rs 3,500 crore, and were allotted without proper valuation, shareholder approval, or board resolutions. This move allegedly diluted the stakes of original promoters Dayalu and Mallika Maran from 50 per cent to 20 per cent each, exploiting the family’s distress during Murasoli’s final illness.

Illegal share transfer (2003): On November 26, 2003, three days after Murasoli Maran’s death, 95,000 shares held by him were allegedly transferred to Mallika Maran without a death certificate or legal heirship certificate, violating the Companies Act, 1956, and Sun TV’s Articles of Association. The notice claims this was a step toward transferring these shares to Kalanithi, bypassing other legal heirs, including Dayanidhi and Anbukarasi, as per the Hindu Succession Act, 1956.

Undervalued share transfers (2005): In October 2005, Kalanithi allegedly purchased shares from Dayalu at Rs 3,173.04 per share but acquired 1,14,999 shares from Mallika Maran in December 2005 at Rs 10 per share. Additionally, 5,70,000 shares held by Kungumam Publications, Kungumam Nidhiyagam, and Kal Investments — entities co-owned by the Maran and Karunanidhi families — were transferred to Kalanithi on November 10, 2005, at Rs 10 per share, resulting in a notional loss of Rs 180.86 crore. The notice highlights this valuation discrepancy as evidence of fraud.

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Misleading IPO disclosures (2006): The notice alleges that Sun TV’s Draft Red Herring Prospectus (DRHP) for its 2006 IPO misrepresented key transactions, including a Rs 10.64 crore dividend falsely reported as paid to Mallika Maran in 2005. It also claims the RHP concealed the undervalued share transfers, misleading investors and regulators. The notice accuses lead managers Kotak Mahindra Capital and DSP Merrill Lynch of colluding in these misrepresentations, violating SEBI regulations.

Money laundering and proceeds of crime: The notice claims the differential value of the 2003 allotment (Rs 3,498.8 crore) and subsequent transactions constitutes proceeds of crime under the Prevention of Money Laundering Act (PMLA), 2002. Kalanithi’s dividends, totalling Rs 5,926 crore until 2023 and Rs 455 crore in 2024, and investments in ventures like Sun Direct TV, Kal Airways, Sun Pictures, and cricket franchises (Sunrisers Hyderabad, Sunrisers Eastern Cape) are alleged to be tainted funds.

Collusion by associates: The notice accuses Ravi Ramamoorthy, Natarajan, Sivasubramanian, and others of facilitating the fraud by falsifying records and bypassing due diligence. It claims Sivasubramanian, the family’s chartered accountant, failed to disclose true share valuations, while Ramamoorthy, as company secretary, enabled fraudulent resolutions. The notice threatens professional misconduct proceedings against them with ICSI and ICAI.

Financial, corporate context: According to its FY2024–25 filing with the Bombay Stock Exchange (BSE), Sun TV reported revenues of Rs 4,544 crore and net profit of Rs 1,654 crore. Kalanithi Maran remains the executive chairman, with Kavery and Kaviya Maran on the board. The company’s filings do not address the dispute.

Legal and political implications: The notice invokes charges under the Indian Penal Code (cheating, forgery, criminal conspiracy), the Companies Act, 2013 (corporate fraud), and the PMLA, demanding restoration of Sun TV’s shareholding to its pre-2003 state and the return of all dividends and assets accrued since.

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Dayanidhi threatens to approach the Serious Fraud Investigation Office (SFIO), Enforcement Directorate (ED), SEBI, and other authorities, seeking prosecution and cancellation of Sun TV’s TV, radio, newspaper, broadcasting licences and group-linked commercial ventures, arguing they were funded by illicit gains.

Sun TV's statement to BSE

In a statement to the BSE signed by Ravi Ramamoorthy, the company said the news appearing in various publications "in relation to certain matters between the Promoter of Sun TV Network Limited and his family member" date back to 22 years, "when the company was a closely held private limited company."

"The statements allegedly made in the articles are incorrect, misleading, speculative, 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.

"We are not aware of any negotiations/ events towards settlement in the promoter's family and to the best of our knowledge, there are no events/information that are material or required to be disclosed under Regulation 30 of the Listing Regulations which may have a bearing on the operations or performance of the company," the statement added.

Potential fallout

This dispute, if it escalates, could disrupt Sun TV’s operations, investor confidence, and market standing, given its Rs 24,000 crore market cap. A probe by SFIO, ED, or SEBI could uncover governance lapses, potentially leading to penalties, licence cancellations, or leadership changes.

The allegations also risk tarnishing the Maran family’s legacy and the DMK’s reputation, given Sun TV’s political ties.

Sun TV has not publicly responded to the allegations, though it has issued a statement saying the allegations relate to a period when the company was private and do not affect its current operations, setting the stage for a protracted legal battle.