Thursday, June 2, 2011
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Sun TV Shares Plunge on Maran Rumors
By Shefali Anand and Ashutosh Joshi
- Manan Vatsyayana/Agence France-Presse/Getty Images
- India’s Minister of Textiles Dayanidhi Maran.
India's telecom scandal has taken more casualties in the stock market.
On Thursday, the share price of Sun TV Network Ltd. fell 28% to close at 272 rupees ($6) and that of airline SpiceJet Ltd. fell 16% to 34.50 rupees (77 cents), on news that a petition was filed linking former telecom minister Dayanidhi Maran to an ongoing corruption probe.
Dayanidhi Maran's brother Kalanithi Maran owns Sun TV and has a large stake in SpiceJet. A spokeswoman for the Central Bureau of Investigation said Dayanidhi Maran is part of their wide-ranging preliminary investigation into the telecom scandals which have been going on since January. She added that no new action involving Dayanidhi Maran has been taken in recent days.
Dayanidhi Maran is currently India's textiles minister and served as telecom minister from February 2004 until May 2007. He was succeeded by A. Raja, who has been arrested along with 13 others in relation to the alleged rigged sale of telecom licenses in 2008. Dayanidhi Maran and Mr. Raja both belong to the Dravida Munnetra Kazhagam party.
The petition filed by a Delhi-based civil interest nonprofit on Wednesday, asked the Supreme Court to accept new evidence including a piece that ran in Tehelka magazine last week as part of their ongoing public interest litigation case on the telecom scam. This case, which was filed in 20 [...]
Did the Indian Media Misfire on the Tatas?
By Amol Sharma and Paul Beckett
- Sebastian Derungs/Agence France-Presse/Getty Images
- Tata Group has repeatedly denied any wrongdoing in the 2G sale. Above, Ratan Tata, the group’s chairman.
When the "2G" telecom scandal erupted last fall, India's Tata Group quickly became the poster child for allegations of corruption in the government's sale of mobile phone spectrum in 2008.
The going theory in the media, it seemed, was that the group's cellphone unit, Tata Teleservices Ltd., had obtained so-called 2G spectrum in some underhanded way. Photos of Group Chairman Ratan Tata, a giant of Indian business, were splashed on the front pages of newspapers and covers of magazines. Stories questioned whether his reputation for ethical conduct was forever tarnished. Television news coverage dwelled on recorded wiretaps of his lobbyist, Niira Radia, which were taken in many quarters as prime facie evidence that Mr. Tata or his company had done something wrong.
We hope that the Indian media provides similarly aggressive coverage of today's news: That the Central Bureau of Investigation told a special court hearing 2G matters in New Delhi that it believes Tata Teleservices followed all the rules in the 2G spectrum sale. This comes after a months-long probe in which the agency has targeted several other companies and players whom it says ripped off Indian taxpayers to the tune of $6.8 billion. The CBI has made 12 arrests thus far.
The CBI was asked its opinion during the hearing of [...]
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