A day after the MIB denied Sun TV’s FM brands Red FM and Suryan FM the right to participate in the Phase III auctions, a RED FM spokesperson said that the company is exploring its options.
RED FM missing as MIB releases list of qualified bidders for Phase III
“We at RED FM believe that the ministry has erred in denying us clearance to bid in Phase III,” said Nisha Narayanan, COO of RED FM, when contacted by exchange4media.
Since the beginning of the Sun TV – Home Ministry debate, it has always been a possibility that RED FM would have to take the legal route in case it failed to receive the necessary security clearance. The fear for the FM industry has been that any legal proceeding might end up delaying the Phase III auctions.
Is seeking legal recourse the best bet for embattled Sun TV Network? Though Narayanan would not confirm or deny this possibility she did say that the legal route was an option. “We are currently considering all strategies, including going legal and knocking on the doors of the courts,” she said.
RED FM and Suryan FM run 45 stations across India and is the largest private FM network in the country. The denial of security clearance not only impacts the expansion plans of the company but also creates doubts over the survivability of the brand as the existing license to run its network has already expired as has the extension, which was provided earlier this year. However, said Narayanan, “We are currently continuing with business as usual.”