The apex court, on Friday, declined the government plea against the Delhi High Court’s decision to allow Red FM to participate in the first stage of the Phase III of the FM auctions held last year. Though Red FM was allowed to bid in the auctions, the ongoing legal squabble between Sun TV Network, the owners of Red FM, and the Home Ministry, has been causing the radio network considerable difficulties.
The operator had approached the Delhi HC in July last year in a bid to overturn the Home Ministry’s decision to not grant it a security clearance.
Red FM to approach Delhi High Court today
In Friday’s ruling, the Supreme Court said a company could not be barred from participating in an auction merely on the ground that some of its shareholders were facing criminal action. The Maran family is being investigated in the Aircel-Maxis case and has a minority shareholding in Red FM.
Media reports say that the SC dismissed the plea on the grounds that a company could not be barred from participating in an auction on the ground that some of its shareholders were facing criminal action. The SC also pointed out that the accused were still undergoing investigation and had not been prosecuted.
Nisha Narayanan, COO of Red FM welcomed the Supreme Court’s decision.
“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,” she said.