Sun FM auction rejection: Media firms cry foul, say govt decision unwarranted

NEW DELHI: The government’s decision to exclude Sun group companies from the FM phase III auction process has been met with deep disappointment by media companies who have slammed the move as arbitrary and unfortunate. Industry players feel that the tug-of-war between the ministries of home and information and broadcasting (I&B) could adversely impacted business sentiment.
Indian Broadcasting Foundation president Uday Shankar described the move as "arbitrary and unfortunate." "IBF feels that Sun group’s exclusion only on the basis of ongoing prosecution in unrelated businesses is a miscarriage of the due process of law and justice."
Shankar, Star TV CEO, also said that MHA was dragging its feet on dozens of other security clearances in the broadcast sector and this had had a negative impact on businesses and company growth plans. "Many of the are companies already in the business of broadcast. It’s very unfortunate that this is happening under the watch of a government so committed to accelerating industrial growth," he added. IBF has also written to I&B minister Arun Jaitley and home minister Rajnath Singh highlighting the industry’s concerns on the cumbersome process of security clearances.
“In IBF's considered view the entire requirement of periodic security clearances and the process involved in securing such clearances is unduly cumbersome and is one of the most stringent barriers to entry causing immense unease of doing business in India in so far as the broadcasting sector is concerned,” he said.
News Broadcasters Association president and India TV chairman Rajat Sharma echoed this sentiment adding, "Sun network despite pending cases has a right to operate its business and denial of renewal of license on the basis of security clearance is unwarranted and unjustifiable. Millions of Sun's viewers cannot be denied their daily source of infotainment and entertainment. This step is completely in contrast with the new business friendly policy propounded by the government. Actions like these reinforce the perception of India not bring a good place to do business and scares away foreign investors."
Anurradha Prasad, BAG Films chairperson and Association for Radio Operators of India (AROI) president, said the decision did not augur well for the radio industry. "As an industry we felt that the to exclude such a big network will impact the industry negatively Though I&B ministry has been pursuing the case, the decision puts a question mark on the ease of business claims being made by the government," she said.
"Any move to block freedom of expression of any individual or organization is not justified in a liberal society. Freedom of speech and expression cannot be curtailed on frivolous grounds," N K Singh, secretary Broadcast Editors Association said though he added that the BEA had not yet deliberated on the issue.