The Madras High Court today issued an interim order allowing Sun Group to participate in the Phase-III auction process of FM radio.
Justice M Sathyanarayanan, who passed the order, said the results of the auction should be kept in a sealed cover till further orders.
The judge also said the decision is subject to the result of the main writ petition filed by the group seeking a direction to quash the order passed by the Information and Broadcasting Ministry.
The Ministry had disallowed the group from taking part in the auction process on the basis of absence of security clearance from the Union Home Ministry.
On Tuesday, the court had reserved its order on an interim plea by the Sun Group seeking a direction to the Centre to allow it to participate in the auction process.
Making the interim prayer in a batch of six petitions, the Sun Group and its companies had sought a stay on the July 15 order of the I&B Ministry refusing the permission.
Senior counsel Raman, appearing for the petitioner, had said the group had been denied security clearance on the ground it faced Aircel-Maxis case linked to 2G spectrum allocation case, money laundering charges and alleged illegal telephone exchange case (in which former Telecom Minister Dayanidhi Maran and his brother and Sun Group owner Kalanidhi Maran are accused).
He submitted that when chargesheeted persons were allowed to enjoy the post of ministers, how could the persons facing mere FIRs be disallowed from running FM radio stations.
He contended that Indian Telegraph Act, 1885 nowhere mentions about the security clearance.
Raman had further said there were contradictions in the statements of the Union government that the Marans caused a loss of Rs 443 crore to the exchequer by establishing a mini-telephone exchange using it illegally for Sun TV whereas the FIR filed in this connection says that the loss was only Rs 1.17 crore.
Allowing the interim plea, the judge, in his order, said, "The prayer sought for by petitioners in these miscellaneous petitions is limited to an extent that they have to participate in the e-auction for moving to Phase-III channels."
Noting they had also furnished all necessary particulars and complied with formalities, he said in the event of the court permitting them to participate in the said auction, the bid amount may go up, which would ultimately benefit the country by means of more revenue.
"It is also to be pointed out at this juncture that the petitioners are existing operators and their business activities as FM broadcasters have not come to any adverse notice."
The judge said, after analysing materials placed before it, the court is of the view that a prima facie case has been made out for grant of interim orders. "In the result, these miscellaneous petitions are ordered as prayed for enabling the Sun Group to participate in the auction," he said.
The court, however, made it clear that the result of the bid made/participation by the Sun Group in pursuant to the interim order, shall be kept in a sealed cover and be produced before it on the next date of hearing and the participation of the petitioners in the ensuing auction, is also subject to the result of the writ petitions.
The judge also made it clear that the observations made in the interim order "are to arrive at a prima facie reason for grant of these interim orders."
The court has not touched upon the merits of the case of either the petitioners or respondent authorities, as the writ petitions have to be adjudicated on its' own merits, he said.
The judge said a careful scrutiny of materials would prima facie disclose that during the period of operation as FM Radio broadcasters, the petitioner's firms did not come to any adverse notice and admittedly, none of the companies is arraigned as accused either in Aircel-Maxis case, proceedings under Prevention of Money laundering Act or prosecution launched by CBI.
"Insofar as Aircel-Maxis case is concerned, it is still in the stage of investigation and the competent authority under the Prevention of Money laundering Act, is yet to file a complaint. Insofar as setting up of illegal telephone lines is concerned, CBI has launched criminal prosecution and it is also in the stage of investigation," the judge said.
It is a well settled position of law that accused is presumed to be innocent, unless the guilt is proved beyond reasonable doubt and "therefore, the said presumption, for the present, operates in favour of the above said persons", he said.
