Cable TV distributor Sumangali Cable Vision can continue to distribute TV channels to its subscribers ruled the Madras High Court today.

Justice V Ramasubramanian in his ruling has set aside the order of the Union Information and Broadcasting Ministry cancelling its licence to the multi system operator (MSO) Kal Cables (owner of SCV) on the grounds that the Union Home Ministry has not given itsecurity clearance.

“I hold that the impugned orders are liable to be set aside. Accordingly, the writ petitions are allowed and the impugned orders are set aside,” he said.

The Judge said Kal Cables is only a last-mile operator. If the licence were to be cancelled for security reasons as cited in the I&B Ministry’s report, it is the licence of the broadcaster of TV channels that should be cancelled and not that of a distributor.

He, however, allowed the liberty to the Ministry to issue a fresh notice, if so desired, after giving an opportunity to Kal Cables to present its case. Principles of natural justice should have been followed, and Kal Cables should have been given a show cause notice and an opportunity to present its case, Justice Ramasubramanian said. “However, this Order will not preclude the Central Government from taking any action in accordance with law, if on the basis of information available with them, (if) it is of the opinion that any action is to be initiated either against the petitioner (Kal Cables) and or against the television channels which form part of the same group and or about the manner in which permission was granted to the petitioner to be a Multi System Operator on September 30, 2006, when one of the promoters was the Union Minister and or about the circumstances under which the file relating the permission granted to the petitioner was kept back for seven years from 2006 till 2013 without being forwarded to the Ministry of Affairs,” he said in the Order adding, “In the file produced by the Ministry of Home Affairs to the Court (on Tuesday) conclude that there are no adverse reports against the Directors/key executives of the petitioner company, from the security point of view.”

Earlier, the I&B Ministry had issued an order dated August 20 to Kal Cables cancelling its licences in view of denial of security clearance by the Ministry of Home Affairs for registration as an MSO, and asked the company to shut down its services in 15 days. Kal Cables operates largely in Chennai with a subscriber base of around 10 lakh.

The company is owned by Mallika Maran, wife of former Union Minister Murasoli Maran, who owns 75 per cent stake in the company, and DK Enterprises which owns the remaining 25 per cent stake.

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