MARAN BSNL FRAUD

SOME EXTRACTS FROM MEDIA COVERAGE OF DAYANIDHI MARAN, KALANIDHI MARAN AND THEIR ILLEGAL ANTI-NATIONAL DIVERSION OF BSNL HIGH SPEED LINES TO THEIR RESIDENCE & USING THOSE FOR TRANSMITTING SUN TV PROGRAMS LIVE.

CAN YOU IMAGINE THIS IS HAPPENING IN INDIA AND YET NOT MUCH IS TALKED ABOUT IT.

Mr AG, Isn't Maran Money Laundering Threat to National Security?

By S Gurumurthy

Published: 14th July 2015 03:26 AM

Last Updated: 14th July 2015 03:38 AM

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  Former Telecom Minister Dayanidhi Maran (File Photo/PTI)

CHENNAI: The Attorney General’s firm opinion is that economic offences, which include charges of money laundering, do not constitute a threat to national security.

The AG says that to hold Marans’ offences as constituting prejudice to the security of the state, they must have done something “threatening national security”, in the sense of actual or imminent threat, to deny them security clearance. The test of actual and imminent threat adopted by the AG to exonerate Marans seems totally misconceived. The threat to national security need not be actual or imminent. Even potential threat prejudices national security. The Cable Television Network (Regulation) Act 2000 uses the words “in the interest of the security of India” or the words “in the interest of the security of the State”. They comprehend potential threat, which is markedly different from “threatening the security of India” in the sense of actual threat. According to the Home Ministry, Marans have caused prejudice to the security of the State in two ways.

First part: Mr Attorney, You Got Facts, Law Right on Marans? Also Read: With 764, Not 323 High Speed Lines, the Maran Loot is Huge, Stupid. And More

One, they had set up an unlicenced, clandestine and unmonitored telephone exchange of 764 high-speed telephone lines, which undeniably constitute potential threat to national security [Mr Attorney, you got facts and law right on Marans? NIE June 13, 2015]. Two, they also stand charged for money laundering, which according to the Home Ministry constitutes potential threat to economic security of India. A critique of the AG’s view to the contrary not only confirms the Home Ministry’s view, but leads to the position that his view that money laundering is no threat to national security is itself a national security risk. Read on.

Security of State

The AG says that Marans’ television and cable businesses are protected under the right to freedom of expression guaranteed under Art 19(1) (a) of the Constitution. The freedom is only subject to the restrictions imposed by Art 19(2).

One such restriction, security of the state, is discussed by the AG in his opinion. The AG refers to the decided cases on Art 19 to contend that “Security of State” in Art 19(2) means crime or violence intended to overthrow the government, levying war and rebellion against the government, external aggression and crimes and the like.

On the decided cases, the AG says that, from the stand of the Home Ministry itself, it is clear that none of the cases instituted against the Marans — meaning including the charge of money laundering — would fall under threat to “national security”.

By that logic, the AG then boldly says that the Home Ministry “seem to suggest that economic security of the state should be covered under the Article 19(2) of the Constitution. I do not warrant for the same”.

Mr AG, do you really mean that economic security is not comprehended within the meaning of security of the State in Art 19(2)?

Mukul Rahtogi

It is obvious that the AG has not been updated on the law, including on the Madras High Court judgment on Kal Cables, by those who had briefed him. In the Kal Cables judgment, which the AG is relying on to give his opinion, the Madras High Court has discussed extensively whether economic security is integral to security of the State. The court had referred to a recent judgment of the Supreme Court of India (in the case of Ex-Armymen’s Protection Services Private Limited Vs. Union of India, 2014). In that case, saying that while it is difficult to define in exact terms as to what national security is, the SC indicated that national security would include economic solidarity and strength. The court also added that what constitutes “security” is a matter of policy for the government to decide and not for the court to define. Mr AG, your opinion does not refer to this judgment or that of the Madras High Court at all. Both say that what is security is a matter of government policy and economic security is integral to it. Yet, you say, Mr AG, in your opinion that economic security is not integral to national security according to courts — thus contradicting both the Supreme Court and the High Court. Referring to the Supreme Court view and also the abuse of power by the Marans noticed by it, the Madras High Court has gone further and ruled, “May be a time has come to hold that the abuse of official position by a person and amassing of wealth of unimaginable proportions, is an assault on the security of the State. Economic aggression may soon become more dangerous than military aggression.”

Mr AG, you seem to be unaware of this observation of the High Court in Marans’ case itself, which directly conflicts with your opinion.

AG Needs to Update Himself

Again, the AG’s contention that economic security is not comprehended within national security is clearly based on an outdated view of law. The AG needs to be updated on this branch of law fast in the interest of national security, as he will be advising and arguing for the government time and again on this vital issue. The world has changed dramatically in the last couple of decades. The Center for Strategic Conferencing Institute for National Strategic Studies 2011 [National Defense University Press Washington, DC] says: “Economic security is a major element of national security, even as borders are less important than ever.” The Congressional Research Service Report to US Congress titled Economics and National Security: Issues and Implications for US Policy [Jan 4, 2011] says that the US national security consists, among others, first, physical security and second, economic security. How then can any one doubt that economic security is integral to national security? Then, Mr AG, is not your view that in Art 19(2) of the Constitution of India “there is no concept of economic security which the Home Ministry seeks to rely on” clearly outdated? The Home Ministry seems to be far more updated on the issue than you, Mr AG.

Money Laundering: Threat to Security

Mr AG, you say that, in your considered view the “charge of economic offences for denying security clearance in the instant case cannot amount to threatening national security.” It means that economic offences are no threat to national security. Now see how outdated are the AG’s view here too. A report on Economic Crimes by the Indian Audit and Accounts Service [2007] says: There is a growing recognition in the world that the economic offences are, many times, part of other serious crimes posing serious threat to the security of the nation.” And, of all economic offences that endanger national security, money laundering is the most serious.

A report titled “Money Laundering and Terrorist Financing: A Global Threat” published by the US Department of State [2004] says that money laundering poses international and national security threats through corruption of officials and legal systems and threatens the financial stability of countries and the international free flow of capital. Mr AG, none of the cases relied on by you had had occasion to consider whether money laundering is a threat to national security. They are, therefore, no authority to say that money laundering is not a national security threat. Mr AG, can you deny this? And yet you say that according to decided cases economic security or economic offences are not integral to national security.

Mr AG, bribery and money laundering are considered the world over as a deadly combination against national security. You seem to have ignored this totally. You have even failed to notice the Preamble to UN Convention On Corruption to which India is a signatory. The UN Convention has noted that all member states are concerned about the seriousness of problems and threats posed by corruption “to the stability and security of societies” and points to links between corruption and other forms of crime, “in particular, organised crime and economic crime, including money laundering” and that cases involving vast quantity of assets can threaten political stability and security of the country”. The Marans have been charged with both bribery and money laundering, Mr AG. They allegedly got paid `740 crore for Dayanidhi Maran, as Minister, pressuring a businessman who owned the Aircel cellular company to sell his company to Maxis Group of Malaysia. They are believed to have laundered the bribe back as genuine investment in Sun Group. The Enforcement Directorate has seized the asset representing the bribe under the money laundering law. This is precisely what money laundering means. An article in the US Federal Bureau of Investigation Law Enforcement Bulletin [May 2001] titled “Money Laundering: A Global Threat and the International Community’s Response” defines money laundering as “the process by which one conceals the existence, illegal source, or illegal application of income to make it appear legitimate”. This is precisely the charge against the Marans. They are alleged to have concealed the bribe taken by them in the Maxis deal and recycled it to make it appear as legitimate capital.

Mr AG, will you still assert that the allegation of money laundering against the Marans is no threat to national security? No, you cannot. And how ridiculous then it is for the I&B Ministry to ask the Home Ministry for “clinching evidence” that can prove allowing Sun TV network operate would impinge upon national security?

Finally Mr AG, will you withdraw your opinion and give another one consistent with the latest law and correct facts?

http://www.newindianexpress.com/columns/s_gurumurthy/Mr-AG-Isnt-Maran-Money-Laundering-Threat-to-National-Security/2015/07/14/article2918838.ece1

Noose tightens around Dayanidhi Maran in BSNL case

Neeraj Chauhan, TNN | Jun 17, 2014, 05.55AM IST
NEW DELHI: Trouble seems to be brewing for former telecom minister Dayanidhi Maran with CBI recently questioning him in the case related to alleged allocation of over 300 BSNL high-speed phone lines at his residence in Chennai. The three-year-old matter saw some movement in May-June with the agency interrogating Maran, besides officials of Sun group and department of telecom. 

Sources said they want to finalize the enquiry soon as directed by the top brass. The case saw movement recently with the change of government as during UPA government, CBI had gone slow in its probe. 

CBI sources said Maran was examined last month in Delhi for his alleged involvement in allocation of the lines which were purportedly used by Sun TV, owned by his family. 

The development comes at a time when the agency is waiting for the attorney general's opinion in another case - Aircel-Maxis deal probe - against Maran, where CBI wants to know whether a chargesheet could be filed against him with the available evidence or not. 

The agency had filed an FIR in the telephone lines case following its preliminary enquiry in which there was enough material to proceed with a regular case against Maran and BSNL officials — the then CGM K Brahmanathan and M P Veluswami.







According to the case, 323 residential lines allegedly in the name of BSNL general manager connected the Boat House residence of Maran with the office of Sun TV through a dedicated underground cable during his tenure as telecom minister, sources said. The probe had started in 2011, nearly four years after getting complaints that a 'virtual' telephone exchange was set up at the then telecom minister's residence for facilitating data transfer from Sun TV. 

The agency had recommended action to the then telecom secretary in 2007 but the department allegedly did not give its nod in the case, sources said. Finally, CBI filed a preliminary inquiry in 2011. 

Sources said these lines were not ordinary telephone lines but costly ISDN, capable of carrying huge data, thus facilitating faster transmission of TV news and programmes across the globe. CBI in its report to the telecom secretary had claimed that these lines were for use of large commercial enterprises to meet special needs such as video conferencing or transmission of huge volume of digital data for which heavy fee was charged but Sun TV got it for free.
http://timesofindia.indiatimes.com/india/Noose-tightens-around-Dayanidhi-Maran-in-BSNL-case/articleshow/36687038.cms

Illegal telephone exchange case: Ex-BSNL official who exposed Dayanidhi Maran gets justice

R. RAMASUBRAMANIAN  | Chennai, December 12, 2013 | 15:09

Dayanidhi Maran A retired BSNL officer C.K. Mathivanan, who exposed a secret telephone exchange allegedly set up at Dayanidhi Maran's residence in Chennai, has finally got justice.  The exchange was set up at the former telecom minister's house in Chennai for transmission of data and visuals of his brother Kalanidhi Maran's TV channel. BSNL at last has restored Mathivanan full pension benefits.   BSNL took the decision after rejecting a recommendation made by a group of senior officials who sought to penalise Mathivanan and 78 of his colleagues for carrying out agitations in September 2011 against the Maran brothers and former BSNL chief general manager M.P. Velusamy.  Mathivanan and the agitators wanted the BSNL to take action against the Maran brothers and Velusamy for setting up a private telephone exchange and thus throwing all relevant rules to the wind.  In fact, the 323 high-speed ISDN lines were allotted in the name of Velusamy and used by Dayanidhi Maran, they alleged.  Though Mathivanan retired six months ago, his pension benefits were stopped. After repeated submissions, BSNL CMD R.K. Upadhyay ordered CGM A. Balasubramanian to review the case.  In a latest order which was communicated to Mathivanan, Balasubramanian said he would be given full pension benefits with immediate effect.   Mathivanan retired as sub-divisional engineer in June.   "Yes, BSNL CGM has informed me that my pension benefits have been restored. I'm happy.  At last, justice has won. I never bothered when my pension benefits were stopped as I have full faith in justice." Mathivanan told India Today Online on the phone.  He said that on Wednesday, a CBI DIG had questioned him in Chennai about the case and he furnished all the details.  "In fact, the scam is wider than I thought.  Originally, we estimated that 323 ISDN lines were used by Maran for his brother's television channel, but yesterday, the CBI DIG told me that they have stumbled upon 40 more ISDN lines," Mathivanan said. "I'm fully confident now that the Maran brothers will sooner or later go to jail because the CBI has a solid case in its hands today," he said.  The CBI, in its preliminary report on the case, had estimated that the BSNL lost Rs 440 crore due to the illegal exchange.   Though Mathivanan brought this issue out in 2007, the CBI swung in to action only after the Supreme Court gave directions in this regard in 2012 and a fresh FIR was registered against Maran two months later.  BSNL man loses pension for exposing Dayanidhi Maran's illegal telephone exchange Jayaraj Sivan, TNN | Oct 3, 2013, 01.15AM IST CHENNAI: The whistleblower, who exposed the secret telephone exchange set up by former Union  telecom minister Dayanidhi Maran at his Boat Club residence in Chennai, was a BSNL subdivisional  engineer, whose pension has now been stopped on disciplinary grounds. CK Mathivanan carried out a campaign within BSNL against Maran for three years for alleged  misuse of infrastructure to facilitate free transmission of data and visuals for a television channel  owned by Dayanidhi's elder brother Kalanithi Maran. After retiring in June 2013, Mathivanan found that he was among the staffers who were penalized  for an agitation against superiors, including those under whose names Maran was allotted 323  ISDN lines. Mathivanan is yet to receive his pension, but the fact that his actions helped expose a  Rs 440-crore revenue loss to the PSU is a matter of his satisfaction. 'Feud in DMK exposed scam' Today, the National Federation for Telecom Employees deputy general secretary says he was relieved  when he heard the news that the CBI had filed an FIR in the case. His modesty does not permit  him to take credit for it, though. "In fact, it was not I who exposed the scam. It got exposed  because of the feud in the DMK," he told TOI. According to him, Maran's exchange was secretly set up by the BSNL Chennai circle office in  2007. "I happened to see a file in which then general manager (operations) G Selvam had  written that other than himself, chief general manager (CGM) and deputy general manager  (operations), no one else should come to know about the 323 lines being provided at Maran's  house. It was a state-of-the-art exchange, which was connected by just one pair of optical fibre  cables. It could carry huge amount of data and visuals at very high speed," said Mathivanan. After a preliminary probe, a CBI team had filed a report recommending action against Maran  and senior BSNL officials. But the departmental nod remained elusive. The issue came back into  focus after a PIL was filed in Supreme Court in 2012 seeking action against the former Union  minister. Trouble had started for the trade unionist in September 2011, when he, along with 100 colleagues,  protested against former BSNL CGM MP Velusamy (in whose name the 323 lines were allotted)  visiting BSNL Chennai circle headquarters after his retirement. "We had information that he had visited CGM's office several times to destroy files pertaining to  the secret exchange. The new CGM, A Subramaniam, acted with a vengeance against us.  Seventy-eight people faced a break in their service. I was given the maximum penalty, which  would have led to my dismissal or compulsory retirement. The next CGM allowed me to retire,  but recommended a cut in my pension. BSNL CMD, however, did not accept the recommendation.  The CMD referred the case back to the CGM for review and it is pending there," said Mathivanan. His prayer to the CBI is that it should expand the scope of its investigation to find out whether  such secret exchanges were set up in other parts of the country as well. "What BSNL has lost is  huge money. It (Rs 440 crore) is adequate to pay minimum bonus to 2.89 lakh employees of  BSNL for four years in a row. It should be recovered from Maran," Mathivanan said. Maran, BSNL officials, caused loss of Rs. 1.2 cr: CBI probe A CBI probe has found that in 2004-2007, former Union telecom minister Dayanidhi Maran had allegedly  caused a loss of Rs. 1.2 crore to the exchequer by illegally installing more than 323 high-speed up telephone  lines at his Chennai residence. This was done in collusion with two senior BSNL officials, who are now  retired. The agency’s FIR, lodged in 2013, had accused Maran and the officials of criminal misconduct.  They have denied the allegations. Despite efforts, Maran could not be reached for comments . The virtual telephone exchange connected Maran’s Boat House residence with a television channel office via a dedicated underground cable link, said a CBI official. “The high-capacity telephone lines and lease circuit facilities were set up illegally in the name of two then chief general managers of the BSNL, Chennai, to ensure that they fell under the service category,” said the official. As a result, BSNL could charge nothing for either the installation or the subsequent use of the lines and other facilities. The lines, usually procured by commercial enterprises, were capable of digitally transmitting audio and video data simultaneously, video-conferencing, and faster transmission of TV news and programmes. “But nothing was paid to the BSNL. No user bills were generated during the period, which resulted in a loss of around `1.2 crore to the exchequer,” said the official. “Our probe will be over soon, after which a final report be submitted in the trial court,” said a source. http://www.hindustantimes.com/StoryPage/Print/1212952.aspx?s=p © Copyright © 2013 HT Media Limited. All Rights Reserved. RS.1.2 crores??  What a joke. What about the money earned from all those hours of telecast on  Sun TV. What about the loss caused to others who were denied of these lines? What about the  cost for laying the lines? And besides - isnt it ANTI-NATIONAL ACTIVITY TO PULL 323  HIGH SPEED TELEPHONE LINES FROM BSNL WITHOUT ANYBODY'S KNOWLEDGE  FOR THEIR PERSONAL USE. THE DAMN GUY HAS USED GOVERNMENT PROPERTY  AS HIS OWN AND PROFITED FROM IT AND NOBODY SEEMS TO BOTHER. Why an illegal telephone exchange in Maran's  house? January 21, 2013 12:42 IST Was something bigger and better  getting transmitted from the illegal  telephone exchange set up in the  residence of former telecommunications  minister Dayanidhi Maran in Chennai?  M R Venkatesh analyses... The startling details of a secret and possibly illegal telephone exchange set up in the residence of former telecommunications minister Mr. Dayanidhi Maran in Chennai are in public domain for over three years. In fact, it is part of political folklore in Tamil Nadu. The UPA Government, despite its avowed zero tolerance policy towards corruption, has maintained a stoic silence on these allegations. The PM, as is his wont, not spoken anything on the charge. Yet, the CBI continues to "relentlessly investigate" the matter since 2007 without reaching any definitive conclusions.  Left to itself, it may well do so for eternity. All this when a preliminary report of the CBI dated as early as 10th September 2007 prima facie established that Maran had set up a telephone exchange with 323 high-speed telephone lines. Importantly, these were set up in the name of Chief General Manager of BSNL apparently to be used as a ruse at a later date. Interestingly, these 323 high speed telephone lines were (stealthily?) linked through separate and exclusive cables laid down by BSNL to the office of Sun TV Network (a company promoted by his brother Mr. Kalanithi Maran and located a few kilometers away from his residence) for its commercial use in January 2007. Consequently, the aforementioned arrangement allegedly facilitated data transfer requirements of Sun TV Network and caused a whopping loss of Rs 440 crore to BSNL and national exchequer (estimated by CBI) with a possible concomitant gain to Sun TV Network. Thanks to a family feud, it may be recalled, Maran resigned as minister in May 2007. What is galling to note that while these information were with the PM (remember CBI reports to the PM) as early as September 2007, Maran was re-inducted into the Union cabinet in May 2009 by Dr. Manmohan Singh. Witness UPA's zero tolerance to corruption! Mr. S Gurumurthy exposed the fraud in a series of articles in the New Indian Express [NIE] on 02.06.2011, 04.06.2011 and 09.06.2011. Further, the NIE published the file noting of BSNL which clearly demonstrated not only the existence of the telephone exchange but also attempts to suppress its very existence. Maran initially issued a notice of defamation to the author of these articles and NIE. Amusingly, after his initial show of bravado, Maran has remained silent. And once Maran became the cabinet minister in 2009, expectedly the CBI too became silent. It is obvious that the investigations into these allegations have been virtually aborted purely on political grounds. And this is UPA's zero tolerance to corruption! It is in this connection, a Writ Petition was filed by Gurumurthy in the Hon'ble Supreme Court seeking a free and fair probe by the CBI on the matter. The Court has recently issued notice to the parties concerned. But questions arise. Does it require direction of the highest Court of the land in 2013 to the CBI on a matter in which the CBI itself had come to a preliminary adverse finding in 2007? Or is it that given the involvement of a powerful political personality, CBI is programmed to diffuse the matter over a period of time? Or is it something more than what it meets the eye? But first the facts of the case. Understanding the fraud According to the petition filed in Supreme Court, the preliminary report of CBI concludes that  installation of 323 lines "was programmed in such a way that no one other than the authorized BSNL staff were aware of the existence of such an Exchange created for his exclusive use." Accordingly, the report further adds that by "such an arrangement, it would appear as if all the lines were used in the residence of the former Minister, but actually the cable laid facilitated SUN TV Network to utilize the service of BSNL provided at his residence." The CBI had inquired into the fraud and sent their preliminary report to the Telecom Secretary in September 2007, disclosing complete details of the fraud and estimating the loss involved. Incidentally all these telephone lines were ISDN lines, which are used for mass transfer of data, voice and video. Out of these, 23 lines were provided with Basic Rate Access facilities, which would facilitate communicating one socket to three channels, which can be used for transmission of signaling information. All these amounted, in effect, to creating a separate telephone exchange – yes an exchange - at the residence of Maran and probably for the exclusive benefit of Sun TV. Now why would Sun TV network want to save money on a few phone lines? Well, it wasn't just that. Remember they were no ordinary lines. Recall these were ISDN lines which could carry programs faster than even satellites to any part of the world. These lines, experts point out, are normally used by commercial enterprises to meet special needs such as video conferencing, transmission of huge volume of digital data - precisely the facility that Sun TV would need for its operations. For this, the Sun TV would have paid huge cost. But it got it all free; at government's cost. As a sample study, it is learnt that 48,72,027 units of calls have emanated from one Telephone no. 24371515 in the month of March, 2007 alone, which is indicative of massive multi-media transfers from the underlying connections. This clearly gives credence to the Sun TV network angle. It is also learnt that similar service connections with ISDN facilities have been provided at the office of Dinakaran, a Tamil daily, belonging to the Sun TV group at Madurai, though the specific telephone numbers are unknown. Needless to emphasize, the joke doing rounds in political circles in Tamil Nadu is that BSNL is a wholly owned subsidiary of DMK. Another Dimension Now extrapolate this to 323 lines for a 4 month period when the lines were reportedly operative – we have an astounding consumption of 630 crore call units. At a rate of 0.70 rupee per call, this works out to a staggering Rs 440 crores. In turn, that implies a savings in excess of Rs 1,300 crores for a full year for Sun TV Network. But there is a flaw in this argument. The total turnover for Sun TV for 2006-07 was a mere Rs 678 crores. Surely, Rs 1,300 crores cannot be a presumptive expenditure (or potential savings) under one head of viz., data transmission. Surely, something is seriously amiss. The CBI report allegedly points out that there are 23 lines with '2437' as the first four digits with the following numbers, namely, 2211 to 2213 (3 lines); 2222; 2233; 2244 to 2246 (3 lines); 2255 to 2257 (3 lines); 2266 to 2268 (3 lines); 2277 to 2279 (3 lines); 2288 to 2290 (3 lines); 2299; 2300; 2301 and 300 lines starting with 1500 and ending with 1799. Further, sources within the BSNL confess that "no information" was "available about these numbers" as such details were neither with the computer cell nor with Public Grievances cell. It implies that these 323 numbers had been kept out of the exchange system itself and hence was not known even to the telephone department. But pray why? Obviously, the idea was not only to deny the existence of the lines but suppress its existence to everyone including the telephone department. Surely such subterfuge gives clue to a different dimension altogether. Put pithily, as per the CBI preliminary inquiry a telephone exchange did exist in Maran's residence in Chennai, it was linked using ISDN lines and the exchange in turn was hooked to the offices of Sun TV. But as argued above these lines could not have been used only by Sun TV to send their programs and data. The mathematics simply does not add up. To that extent Sun TV using all lines for its commercial use looks far-fetched. That takes us to the next logical question – was the telephone exchange used for some other purposes? Was something bigger and better getting transmitted from these telephone lines? Or better still, was Maran using this exchange for eavesdropping on some of India's most powerful and influential? Is that why the CBI is reluctant to act despite being in the know for the past five years? Is that why the PM is loath to act on this matter? Is that the reason why UPA government is coerced into inaction? Does that explain why the hunter has become the hunted in this matter. Before one dismisses all this as a figment of my imagination let us not forget that in this day of advanced communication technology, eavesdropping is easy, especially if one has telephone exchange at his residence connected to 323 ISDN lines. Can someone come with a better explanation?  Whatever be it, the debate in political circles now is on the end use of this telephone exchange, not on the telephone exchange itself. And probably, this time around, one can explain the silence of our PM. A classical case of M for Manmohan, M for Maran and M for Mendacity too! The author is a Chennai-based Chartered Accountant. He can be contacted  at mrv@mrv.net.in M R Venkatesh Illegal BSNL lines case: CBI examines Dayanidhi Maran In a bid to finalize the case in alleged allocation of over 300 BSNL high-speed phone lines given to the then Telecom Minister Dayanidhi Maran, CBI has examined him in connection with the case.  CBI sources said Maran was examined here last month for his alleged involvement in the allocation of the lines which were purportedly used by a company, owned by his family, involved in electronic media. The agency had registered a case against Maran and BSNL officials for allegedly allotting over 300 high-speed telephone lines to his residence in Chennai. Maran did not respond to SMS seeking his reaction on the development. The agency had filed the FIR following its preliminary inquiry to proceed with a regular case against Maran and BSNL officials the then CGM K Bramhanathan and MP Veluswami. The sources said these 323 residential lines were allegedly in the name of the BSNL General Manager connecting the Boat House residence of Maran with the office of the company through a dedicated underground cable during his tenure as Telecom Minister. The probe had started in 2011, nearly four years after getting complaints that a ‘virtual’ telephone exchange was allegedly set-up at the then Telecom Minister’s residence for facilitating data transfer. CBI has alleged these lines were not ordinary telephone lines but costly ISDN, capable of carrying huge data thus facilitating faster transmission of TV news and programs across the globe. CBI in its report to the Telecom Secretary had alleged these lines were for use of large commercial enterprises to meet special needs such as video conferencing or transmission of huge volume of digital data for which heavy fee is charged. http://www.bgr.in/news/illegal-bsnl-lines-case-cbi-examines-dayanidhi-maran/ Illegal BSNL Lines: CBI Examines Dayanidhi Maran In a bid to finalize the case in alleged allocation of over 300 BSNL high-speed phone lines given to the then Telecom Minister Dayanidhi Maran, CBI has examined him in connection with the case. CBI sources said Maran was examined here last month for his alleged involvement in the allocation of the lines which were purportedly used by a company, owned by his family, involved in electronic media. The agency had registered a case against Maran and BSNL officials for allegedly allotting over 300 high-speed telephone lines to his residence in Chennai. Maran did not respond to SMS seeking his reaction on the development. The agency had filed the FIR following its preliminary enquiry to proceed with a regular case against Maran and BSNL officials -- the then CGM K Bramhanathan and MP Veluswami. The sources said these 323 residential lines were allegedly in the name of the BSNL General Manager connecting the Boat House residence of Maran with the office of the company through a dedicated underground cable during his tenure as Telecom Minister. The probe had started in 2011, nearly four years after getting complaints that a 'virtual' telephone exchange was allegedly set-up at the then Telecom Minister's residence for facilitating data transfer. CBI has alleged these lines were not ordinary telephone lines but costly ISDN, capable of carrying huge data thus facilitating faster transmission of TV news and programmes across the globe. CBI in its report to the Telecom Secretary had alleged these lines were for use of large commercial enterprises to meet special needs such as video conferencing or transmission of huge volume of digital data for which heavy fee is charged. http://www.outlookindia.com/news/article/Illegal-BSNL-Lines-CBI-Examines-Dayanidhi-Maran/844920 A solar eclipse in Chennai, Maran's Sun empire faces worst crisis in its history Posted on: 01:57 PM IST Jun 11, 2015 | Updated on: 4:00 pm,Jun 11,2015 IST http://www.ibnlive.com/news/politics/a-solar-eclipse-in-chennai-marans-sun-empire-faces-worst-crisis-in-its-history-1004784.html Chennai: Is the sun setting on the Maran empire? This was the inevitable question floating in the minds of many as news spread that the Home Ministry had denied security clearance to 33 television channels belonging to the Sun TV Network. With a reach of more than 95 million households, one of India’s largest media groups faces the threat of going off air if its broadcasting licences are cancelled. In an interview to CNBC-TV18, Chief Financial Officer, SL Narayanan said it will be an “armageddon event” if the Information & Broadcasting Ministry decides to revoke their licences. Hinting at moving court, Narayanan added, “'If we do reach a point where something like that happens, I do believe that there are sufficient recourses for us to get protected because at the end of the day, I don’t think anybody can be condemned without giving a fair hearing.” So why has the Home Ministry decided to “condemn” Kalanithi Maran-controlled Sun TV Network? The decision to cancel security clearances reportedly has to do with three pending criminal cases against Sun Group’s Chairman Kalanithi Maran and his brother and former union minister Dayanidhi Maran. The CBI is investigating the Maran brothers and Sun Network in the Aircel Maxis deal, the Enforcement Directorate is probing a money laundry case and the Marans also facing an enquiry into the illegal telephone exchange run from the premises of Sun TV. All these cases date back to Dayanidhi Maran’s tenure as telecom minister between 2004 and 2007. Born to former union minister Murasoli Maran, Dayanidhi Maran, who is also the grandnephew of DMK patriarch M Karunanidhi entered the political arena in the 2004 Lok Sabha elections. While older brother Kalanithi Maran chose to sit out of politics, Dayanidhi had the backing of his sibling’s Sun Network media empire. A political novice, Dayanidhi Maran defeated his AIADMK rival by a margin of 1,30,000 votes. He was inducted into the Union Cabinet as Minister for Communication and Information Technology despite the glaring conflict of interest. “The Maran brothers were at the right place at the right time - both in terms of entrepreneurship and political leverage. One without the other wouldn’t have helped them,” says N Sathiyamoorthy, director of the Chennai Chapter of Observer Research Foundation (ORF). Before becoming one of India’s largest media conglomerates, the Sun Group had a humble beginning. With a bank loan of reportedly $86,000 Kalanithi Maran launched Sun TV, South India’s first private satellite channel in 1993 from the DMK headquarters in Chennai. Launching with three hours of programming every day, Sun TV’s instant popularity saw the channel gradually increase the amount of programming. By January 1995, Sun TV became a 24-hour channel. Over the years the Sun Group’s business has grown and expanded multi-fold and now consists of 33 TV channels spanning the South Indian languages, service provider Sun Direct DTH, 45 FM radio stations, 2 newspapers, 5 magazines and an IPL franchise – Sunrisers Hyderabad. But can the Sun Group’s success be attributed to the political clout that the Marans enjoyed, especially when the DMK was in power both at the Centre and at the state? While Jayalalithaa’s AIADMK government was in power in Tamil Nadu when Sun TV launched, the DMK took over the reins of the state in 1996. At the Centre, the DMK was part of the United Front governments between 1996 and 1998 under prime ministers HD Deva Gowda and IK Gujral. The DMK was a party to the NDA government between 1999 and 2004, with father Murasoli Maran being the Union Minister for Commerce and Industry until his death in 2003. The Dravidian party then switched loyalties to the Congress and was an alliance partner in the UPA. “Things seem to have worked in their favour especially in terms of government clearances,” says political commentator Sathiyamoorthy. But given that the Sun TV Network was present across the southern states he notes, “You have to remember that the Sun TV group in its various avatars and various south Indian languages was a pioneer of sorts.” Media analyst Badri Seshadri explains how the Marans used their political leverage in the state and at the Centre to unfair playing field for rival channels. “They nicely gamed the system to get the most. They made sure that serious competitors never got an inch in the Tamil TV space. For a long time no one could get a news licence for a Tamil channel. On the cable distribution front, thugs were deployed to cut rival's cables. Competing channels found themselves off the air in the Sun controlled Sumangali cable vision or were asked to pay exorbitant carriage fees,” he says. The Marans have, however, had their fair share of hurdles. Dayanidhi was forced to step down from his Cabinet position following the controversial survey published in 2007 by Kalanithi Maran’s Tamil newspaper Dinakaran suggesting that Karunanidhi’s younger son MK Stalin was the preferred successor to lead the DMK over MK Alagiri. The family feud forced the DMK to break the TV and distribution monopoly of the Marans by launching its own channel – Kaliagnar TV and a government-controlled cable company –Arasu cable. Although, the Marans were brought back into the DMK fold shortly ahead of the 2009 general elections, Dayanidhi’s power weakened in the party following the family feud. With party colleague A Raja taking control of the telecom portfolio, Maran was handed the Textile Ministry in 2009. But two years into his second term as a union minister, Dayanidhi was forced to resign once again – this time over his alleged involvement in the 2G spectrum scam. With corruption and the 2G scam fresh on people’s minds, the DMK was routed in the 2011 Tamil Nadu Assembly elections and in the 2014 Lok Sabha elections. Dayanidhi Maran, a two-time MP from Chennai Central lost to the AIADMK. While Dayanidhi Maran’s alleged sins have caught up with him on the political field, will these criminal cases be the beginning of the end to the Sun Group? Is the sun setting on the Maran Empire? Experts say it is too early to predict the future of the Sun Group based on the Home Ministry’s decision to cancel security licences. “It may not be possible in India to completely shut out an entity like the Sun group, just like that. I think Kalanithi Maran will fight it out. I expect him to move the courts and the courts to give him at least temporary relief,” states Badri Seshadri. To predict the downfall of Kalanithi Maran and his vast media empire would be reckless and foolish. After all, as in politics, comebacks are everything. Maran Brothers Lost in Delhi What They Won in Chennai By Express News Service Published: 28th July 2015 04:03 AM Last Updated: 28th July 2015 08:59 AM Former communications minister Dayanidhi Maran | PTI CHENNAI: The media had reported on Sunday that Marans have won the battle against denial of security clearance for  Sun TV FM Channels in the Delhi High Court as they had won by the interim orders of Justice Satyanarayana of Madras  High Court. But the order of the Delhi High Court which came out on Monday indicates that what the Marans seem to  have lost in Delhi what they had won in Chennai. This interesting turn in the Marans case needs understanding of some basic facts. The FM radio companies from Delhi  and Mumbai which had petitioned against denial of security clearance to Delhi High Court were joint venture companies  in which Marans did not hold the majority shares nor were Marans directors in the two companies. It is only on this ground  that the Delhi High Court has okayed the participation of the two companies in E-auction for FM radio license. >> Reply to CBI, Court Tells Maran The Madras High Court on the other hand had passed favourable orders in respect of companies where Marans are  majority shareholders and/or directors. The Madras High Court had said that prima facie Marans had established that the  security denial was not proper. The Court had gone into whether the government was right in denying security clearance  to Marans. The central issue is whether the court could indeed go into national security issues. Whether this aspect was u rged on behalf of the government in Madras High Court is not clear. But in Delhi High Court this point was brilliantly argued by the Additional Solicitor General Tushar Mehta who represented the central government. The Delhi High Court has held the court cannot go into government policy to permit or deny security clearance. It means Sun TV controlled by Maran can’t challenge government order on security clearance. Denial of security clearance cannot be challenged unless it is malafide. The Delhi Court has clearly ruled “We also make it clear that we are not touching upon the policy of requiring a security clearance. We are, as rightly pointed out by Mr Mehta, not sitting in appeal over the decision of the respondent as to the security angle assessment insofar as Shri Dayanidhi Maran or Shri Kalanithi Maran are concerned. We are also not called upon to comment upon, nor have we, as to whether the allegations/charges against the said two individuals and Sun TV are well-founded or unfounded.” “Those would be decided in criminal proceedings.” The Court also said that not only the companies but also its Directors as individuals -- that is Marans -- have to be security  cleared. Noting that Maxis, 300-line telephone & money laundering cases as the basis for security denial the Delhi High  Court has refused to go into whether the charges in the cases are adequate for denial of security clearance which is the  prerogative of the central government. “Let us clear some ground with regard to the scope of challenge and the amplitude of our consideration in these writ  petitions. We are not adjudicating on the validity of the stipulation regarding security clearance.” The Court noted that  even though the petition had prayed for quashing [Cl 3.8] for security clearance it was not argued. The Delhi High Court has passed final judgement against all arguments on the basis of which Marans have secured  interim order from the single judge of the Madras High Court. Marans have challenged the denial of security clearance  on the ground that there is not adequate ground for denial and also on grounds of violation of the freedom of expression  guaranteed under the constitution. The Delhi high court overruled all the arguments and has virtually decided the case against the Sun TV group -- not only  in FM radio matter but also potentially in the case of Kal Cables which runs the cable company and also Sun TV which  runs the channels of the television. Also the Delhi High Court was not persuaded by the Attorney General line of Constitutional disaster if the security  clearance was denied. In fact neither Kapil Sibal nor Abhishek Singhvi dared to have touched the constitutional point at all even though their  petitions had raised it. The Delhi High Court order is a division bench order which would prevail over the interim order of f the single judge in  Madras. It is evident that what Marans have gained from the Madras High Court in Chennai they have lost in Delhi.  They have also have had the law decided against Sun TV and Kal Cables. There is also flaw in Delhi High Court order which seems to have resulted in the favourable order. The Court had held  that the stipulation for security clearance does not extend beyond the company and directors to shareholders as there  was non intent to bring in the shareholders. The Court does not seem to have noticed that the form in which security  clearance has to be applied clearly asks for shareholding above 10% held by any one. The intent is therefore clear  that shareholding is also a factor for security clearance. So the Delhi petitioners seem to have been lucky more than  having the law in their favour. <div id="vnVideoPlayerContent"></div><script>var ven_video_key="NjE2MDk2fHw4fHw http://www.newindianexpress.com/states/tamil_nadu/Maran-Brothers-Lost-in-Delhi-What-They-Won-in-Chennai/2015/07/28/article2944421.ece

The Supreme Court on Wednesday stayed the Madras High Court order cancelling former Telecom Minister Dayanidhi Maran's anticipatory bail. Justice T.S. Thakur also asked whether political vendetta was behind the push for Maran’s arrest. Here's a look at the illegal telephone exchange case that the former Minister has been embroiled in:

Triple Trouble

The Madras High Court has observed that it does not find the CBI's allegations against Maran frivolous and that the charges are corroborated by material on record and circumstances.

What exactly is the case about ?

The case by the CBI

• Case: CBI says between June 2004 and June 2007, officials provided ISDN, broadband connections and leased line circuits at Maran's residence under 'service category'
• Illegal Lines: No provision in rules for minister to get facilities without DoT’s approval
• Free Lines: Maran got 364 actual phone numbers with high-end connections at his Gopalapuram residence, no bills were raised and no payments were made
• SIM Cards: He also had 19 prepaid mobile SIM cards without entitlement, these cards were used by Sun TV staff without payment
• New Address: In December 2006, Maran shifted to Boat Club Road residence. Another 353 connections were given to new residence
• Leased Lines: He also got 13 connections from MTNL for his Delhi residence, including ISDN connections, 8+8mbps leased line circuit also
• All for Sun: All the exchanges were configured with the main exchange at then Sun TV head office in Anna Arivalayam in Chennai
• Huge Loss: Probe revealed estimated loss amounting to Rs. 1.78 crores to exchequer
• Complicity: Chief general managers of Chennai Telephones K Brahmadathan (2004-2006), M.P. Velusamy(2006-2007) booked as co-accused.

Dayanidhi Maran's argument

• » ISDN PRA connection is just one, and not over 300 as claimed. Anyone can get this facility on payment of RS. 1,750, and only one bill is generated
• » As Cabinet minister, he was entitled to 1,50,000 free calls and even assuming 300 connections were used, it was within his eligibility
• » Allegation that Sun TV used these connections for data transfer is baseless
• » Charge that he did not cooperate with CBI investigation is false. Charge that he was evasive and non-cooperative only meant that the CBI was expecting a confession

Two other cases against Maran

• AIRCEL-MAXIS CASE: In August 2014, CBI files chargesheet alleging that Dayanidhi plotted with T. Ananada Krishnan, owner of Malaysian company Maxis, and forced Sivasankaran of Aircel to sell his shares to Mr. Krishnan
• MONEY-LAUNDERING CASE Based on the CBI’s case findings in the Aircel-Maxis probe, the Enforcement Directorate opens investigation under the Prevention of Money Laundering Act. On April 2, 2015, the Directorate attaches Rs. 742.58 crore worth assets.