In a dramatic escalation of a high-stakes family feud, former Union minister Dayanidhi Maran has served a legal notice on his elder brother, Kalanithi Maran, accusing him of regulatory violations and the unlawful transfer of lakhs of shares in Chennai-based Sun TV Network Ltd.
According to the notice, the disputed shares—allegedly transferred to Kalanithi without consent—are worth several thousand crores of rupees. Dayanidhi further alleged that his brother received ₹5,926 crore in dividends up to 2023 and an additional ₹455 crore in 2024, calling the alleged offences “continuous in nature and continuing as on date”.
The sibling rivalry has had market repercussions. Shares of Sun TV Network fell by 5% as news of the legal battle surfaced. Meanwhile, the company reported a turnover of ₹4,544 crore and a net profit of ₹1,654.45 crore for the financial year 2024–25.
Dayanidhi Maran has threatened to escalate the matter to statutory and enforcement authorities, including the Serious Fraud Investigation Office (SFIO), the Securities and Exchange Board of India (SEBI), and the Enforcement Directorate (ED). He is seeking civil, criminal, and regulatory action against Kalanithi Maran and his associates, including Kalanithi’s wife, Kaveri Kalanithi.
He has demanded that the ownership structure of Sun TV Network Ltd and its related entities be reverted to its state as of September 15, 2003. The demand includes reinstating shares to MK Dayalu Ammal, widow of the late Tamil Nadu chief minister M. Karunanidhi, and to the legal heirs of the late Murasoli Maran (SN Maran).
The original company, Sumangali Publications Private Limited, was incorporated on December 12, 1985 with two promoters—MK Dayalu Ammal and Mallika Maran, widow of Murasoli Maran—each holding a 50% stake. According to the legal notice, the dispute stems from a critical moment in September 2003 when Murasoli Maran was gravely ill and nearing death.
During this period, Kalanithi Maran allegedly allotted 12 lakh equity shares of Sun TV Private Limited to himself at a face value of ₹10 each. Dayanidhi claims this was done without fair valuation, proper consideration, or the consent of other shareholders—including members of both the Karunanidhi and Maran families.
Referring to Kaveri Kalanithi, Dayanidhi further alleged that she unjustly enriched herself by drawing an annual salary of ₹87.5 crore. “This reflects your deceptive scheme to siphon off and misappropriate company funds,” he stated in the legal notice. He has demanded the return of all monetary benefits, dividends, assets, and income allegedly misappropriated since 2003.
The Maran family feud casts a spotlight on the challenges of corporate governance in family-owned businesses. Analysts say such disputes can undermine investor confidence and damage the reputation of even well-established companies.
The case may prompt increased scrutiny of internal governance structures, especially where ownership is intertwined with familial legacy and political clout.
Dayanidhi has given his brother a one-week deadline to comply with the demands set out in the notice. With regulatory complaints likely to follow, the battle over Sun TV Network could soon extend far beyond the family and into the courts and boardrooms of India’s corporate and regulatory institutions.
(By arrangement with livemint.com)
