Sun TV Family Feud: DMK MP Dayanidhi Maran sends legal notice to billionaire brother Kalanithi Maran

The legal notice has been served by K Suresh of Law Dharma, a research- based litigation support firm that has offices in Santhome, Chennai.

Moneycontrol has seen a copy of the notice and has reached out to both Maran brothers for their response via email, calls and messages.  The story will be updated if they respond. Sun TV and K Suresh, the lawyer representing Dayanidhi Maran, did not respond to queries.

“In order to take over the entire company and its assets for the personal benefit of No.1 & 2 of you, (Kalanithi and Kaveri Maran) No.1 of you orchestrated a deceptive and devious plan in active conspiracy with No.2 to 8 of you. As part of executing your premeditated fraudulent scheme, taking advantage of the family's situation, especially when my client’s father’s health was critically ill, that he could pass away at any moment and the entire family was concerned about his deteriorating health, No.1 of you and No.2 of you commenced your first illegal activity in September 2003,” the notice begins, referring to the ill health and subsequent death of their father, Murasoli Maran, who is the nephew of Mr Karunanidhi.

September 2003 Allotment

The notice alleges that after their father died in 2003, shares were transferred to their mother Mallika Maran without proper legal documents like a death certificate or legal heir certificate, which were issued only days or months later. This transfer was done to allegedly help move shares later to Kalanithi Maran.

The notice alleges that Kalanithi allotted 12 lakh equity shares to himself at Rs 10 each on 15 September 2003, an “illegal act of criminal breach of trust and cheating.” This when, the value of shares then was between Rs 2,500-Rs 3,000 as per the notice.

“In other words, No.1 of you (Kalanithi) allotted 60% of the shares of M/s.SUN TV Private Limited without any consultation or approval from the existing majority/promoter original shareholders at face value of Rs 10/- each,” the notice alleges.

At that time, the company was financially strong and did not need to raise money, so there was no reason to issue these shares, the notice alleges.

Before this, Kalanithi did not own any shares, but after this move, he became the majority owner, reducing the original families’ shares from 50% each to just 20%, per the notice.

Kalanithi Maran currently owns 75 percent in the listed Sun TV network and is one of India’s richest businessmen, with a net worth of $2.9 billion.

The notice says that Dayanidhi Maran will seek a government investigation by the Serious Fraud Investigation Office (SFIO), as these actions are serious crimes under company and criminal laws, including money laundering.

“The difference amount between the alleged payment of Rs. 1.2 Crores towards allotment of 12,00,000 equity shares and the actual approximate value of 12,00,000 equity shares to the tune of Rs.3500 Crores at the relevant time is nothing but proceeds of crime and all of you are possessing the said differential amount of Rs.3,498.8 crores projecting the same as untainted one and hence all of you are continuously committing  an act of Money laundering,” the notice alleges, adding that Kalanithi has also derived benefits by way of dividends to the tune of Rs 5,926 crore till 2023 and Rs 455 crore in 2024 alone.

The notice also rakes up a previous dispute between the Karunanidhi and Maran families, where the members of the former accused the latter of short-changing them by buying out MK Dayalu’s stake in Sun TV for 100 crores, when the company was valued much higher after its IPO.

Details in RHP Questioned

It further alleges that Sun TV misled its stakeholders in its Red Herring Prospectus filed in 2006.

“It is also worthwhile to mention that you have informed in the Red Herring Prospectus of M/s.SUN TV Limited that a sum of Rs 10.64 crores had been paid by way of dividend to Mallika Maran as on 31-12-2005. However, no such amount has been paid to her by way of dividends in the year 2005. Therefore, you have falsely declared information in the Red Herring Prospectus, thereby deceiving the general public”, it alleges.

It further alleges that “these proceeds of crime have been utilized to further enrich yourself by acquisition of valuable assets / companies, such as Sun Direct TV Pvt Ltd, Kal Radios Pvt Ltd, Kal Airways Pvt Ltd,Kal Publications pvt ltd, Sunrisers Hyderabad, South Asian FM, Sun Pictures, A Cricket Team in South Africa, a cricket team in United Kingdom and SpiceJet, and other downstream investments.

The notice demands that Kalanithi 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 M.K. Dayalu and the legal heirs of Late S.N. Maran.

“Further, that he and his wife 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 them from the year 2003 till date, to M.K. Dayalu and the legal heirs of S.N. Maran.”

If these are not complied with, all appropriate civil, criminal, regulatory, and enforcement proceedings against him and his associates may be initiated.

Dayanidhi Maran further alleged that an earlier notice sent on 7th October, 2024 elicited a vague reply, subsequent to which Kalanithi allegedly paid his other sibling Ms Anbukarasi, 500 crores towards part of a settlement.

Moneycontrol could not ascertain if Kalanithi Maran has responded to the notice as yet. But sources familiar say this is a “personal matter”, that is unlikely to have an impact on how Sun TV is operated.