Post SC ruling, Red FM charged up to launch in newer markets

The Supreme Court ruling on January 29, 2016, wherein it dismissed the plea of the Ministry of Information and Broadcasting (MIB) challenging Delhi High Court’s order allowing the participation of Sun TV’s Red FM in the FM Phase 3 auctions last year, has brought much cheer to the FM player’s camp.

Reacting to the judgement, Nisha Narayanan, COO, Red FM, said, “We are extremely happy with the decision of the Supreme Court to dismiss the plea of the MIB against the judgment of the Delhi High Court. This just reaffirms our faith in the judicial system and we at Red FM like any other responsible media house are totally committed to give our listeners a quality product like we have done in the past decade. Being a market leader, we are all charged up to strengthen brand ‘Red’ and launch Red FM in newer markets and build a strong brand there too.”

It may be recalled that the Delhi High Court in its order dated July 26, 2015, had allowed Red FM to take part in the FM Phase 3 auctions that took place in July-August last year.

The MIB had earlier prevented Red FM’s participation in the Phase 3 auctions stating that the Home Ministry had not granted it security clearance on grounds that Kalanithi Maran, CMD, Sun TV (which controls Digital Radio Broadcasting of which Red FM is a part), was facing charges of alleged money laundering.

Digital Radio Broadcasting moved the Delhi High Court against the MIB’s decision, following which the Court permitted Red FM to participate in the Phase 3 auctions. The Court had held that the condition of the security clearance did not extend to the shareholders.

In its January 29, 2016 ruling, the Supreme Court stated that only when a company or its directors faced criminal action could security clearance be held back, but the same condition could not be extended to shareholders facing criminal charges.