Delhi HC allowed Red FM to participate in Stage-III of FM auctions

Jul 27, 2015 13:16 IST

Digital Radio Broadcasting LtdDelhi High Court on 26 July 2015 allowed Digital Radio Broadcasting Ltd, which runs Red FM to participate in the Stage-III of the FM radio waves auctions.

The court also quashed the Union Government’s decision of 15 July 2015 wherein Red FM was denied security clearance due to its association with Sun TV promoted by Kalanithi Maran who along with his brother Dayanidhi Maran is being prosecuted in cases of money laundering.

The order was passed by a bench of Justices Badar Durrez Ahmed and Sanjeev Sachdeva on a petition filed by Digital Radio Broadcasting Ltd of Delhi and Mumbai challenging the government’s July 15 decision.

Earlier, the court had termed the denial of security to Red FM due to its association with Sun TV as “incongruent” because on 24 July 2015 Madras HC allowed Sun TV to take part in the Stage-III e-auction.

The Delhi HC also rapped government for not making clear what does it mean by security clearance. It had said the clause “requiring company and directors of Radio Company to be security cleared” is vague and it can be misused.

Stage-III FM auctions will start from 27 July 2015 as the Stage II license is set to expire in September 2015.

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