The deep-seated family feud within one of Tamil Nadu's most politically influential and economically powerful families has erupted into a major legal battle, with former Union Minister and DMK MP Dayanidhi Maran leveling explosive allegations of fraud against his elder brother, media mogul Kalanithi Maran.

The dispute, which has simmered for years, now threatens to unravel the ownership structure of the colossal SUN TV Network Limited.

In a legal notice dated June 10, obtained by multiple media publications and issued through Chennai-based advocate K Suresh of Law Dharma, Dayanidhi Maran accuses Kalanithi Maran and seven co-accused -- including Kalanithi's wife Kaveri, key financial consultants, the family's chartered accountant, company officials, and close associates -- of orchestrating a 'calculated and unauthorized scheme' to gain illicit control over the family's media empire.

The notice details alleged methods including fraudulent share allotments, forged documentation, and pervasive corporate misgovernance.

Allegations centered on father's final days

Central to Dayanidhi Maran's allegations are transactions that purportedly took place during the terminal illness of their father, the late Union Minister Murasoli Maran. Murasoli Maran, a revered figure and nephew of late DMK patriarch M Karunanidhi, was in a coma and on life support from late 2002 until his passing in November 2003.

The notice specifically alleges that on September 15, 2003, just days after Murasoli Maran's return to Chennai from the United States, Kalanithi unilaterally allotted to himself 1.2 million equity shares in the then SUN TV Private Limited. Crucially, these shares were allegedly issued at a mere face value of Rs 10 each, without the necessary board or shareholder approvals. This occurred at a time when the company's share valuation was estimated between Rs 2,500 and Rs 3,000 per share, with reserves and surplus exceeding Rs 253 crore.

This alleged share issuance, the notice claims, effectively handed Kalanithi a 60 per cent stake overnight, drastically diluting the combined 100 per cent holdings of the original promoters -- the families of Murasoli Maran and M Karunanidhi -- to just 20% per cent each. Dayanidhi Maran's legal document estimates the fair market value of these shares at the time to have been over Rs 3,500 crore, yet Kalanithi allegedly paid only Rs 1.2 crore.

Pattern of alleged unlawful transfers detailed

The legal notice further claims that this initial transaction was the beginning of a sustained pattern of fraudulent activities. It alleges that on November 26, 2003, a mere three days after Murasoli Maran's death and two days before his death certificate was issued, 95000 shares in his name were controversially transferred to his wife, Mallika Maran. The notice claims this transfer was done without a legal heir certificate or proper authorization, in violation of the company's Articles of Association. These shares were reportedly later transferred to Kalanithi.

Similar alleged transactions are cited across other family-owned entities, including Kungumam Publications, Kungumam Nidhiyagam, and Kal Investments (Madras), which collectively held 285,000 shares in SUN TV. These shares, too, were purportedly transferred to Kalanithi at the same Rs 10 per share value. This stands in stark contrast, the notice highlights, to shares Kalanithi purchased from MK Dayalu -- former Chief Minister Karunanidhi's wife -- which were acquired at a significantly higher price of Rs 3,173.04 per share during the same period.

The legal document also challenges disclosures made in the Red Herring Prospectus filed prior to SUN TV's 2006 Initial Public Offering (IPO). It alleges that a Rs 10.64 crore dividend ostensibly paid to Mallika Maran in December 2005 was never disbursed, and that the IPO prospectus 'concealed the true nature of prior internal share transfers'.

'Proceeds of crime' and demands for full restitution

Dayanidhi Maran's notice makes explosive claims that the proceeds from these alleged fraudulent transactions were used to fund substantial investments in a multitude of ventures. These include major entities like Sun Direct TV, Kal Radios, Kal Airways, Sun Pictures, South Asian FM, and even popular cricket franchises such as Sunrisers Hyderabad and Sunrisers Eastern Cape.

The notice explicitly alleges these investments constitute 'proceeds of crime' under the Prevention of Money Laundering Act, 2002. It points to specific bank accounts and asserts that over Rs 8,500 crore was invested in Indian and international mutual and REIT funds.

Furthermore, the notice estimates that Kalanithi received over Rs 5,926 crore in dividends between 2003 and 2023, with an additional Rs 455 crore in 2024 alone. It also references a Rs 500 crore payment made to the Marans' sister, Anbukarasi, in late 2024 following an earlier legal notice from October. This payment is characterized as an attempt to privately settle the matter and suppress legal consequences, allegedly routed through Mallika Maran's account and funded by SUN TV dividends.

Dayanidhi Maran asserts that as a legal heir of Murasoli Maran, he was unjustly denied his rightful share in the company and deprived of corresponding bonus shares, including nearly 60 million bonus shares allegedly issued to Kalanithi in December 2005.

The notice formally demands the restoration of the shareholding structure to its original status as of September 15, 2003, and the return of all dividends, assets, and proceeds derived since then to the original promoter families.

Widespread ramifications expected

The Maran family holds immense sway in Tamil Nadu's political and business landscape. Murasoli Maran, the late patriarch, was a shrewd political mind and a trusted confidant of M Karunanidhi, serving as the DMK's voice in Delhi for over three decades.

After his demise, Kalanithi built the vast Sun Group into a media powerhouse spanning television, newspapers, radio, cinema, aviation, and sports, while Dayanidhi entered national politics, becoming a Union Minister.

Historically, internal family disputes were often contained and resolved privately due to their intricate ties to the Karunanidhi family. However, with Karunanidhi's death in 2018, that dynamic appears to have shifted, leading to this unprecedented public legal battle.

Dayanidhi Maran's legal notice invokes alleged violations under multiple statutes, including the Companies Act (1956 and 2013), the Indian Penal Code (sections 406, 420, 467, 471, 120-B), the SEBI Act, and the Prevention of Money Laundering Act.

The notice explicitly states Dayanidhi Maran's intention to escalate the matter to various regulatory and investigative bodies. He plans to approach the Serious Fraud Investigation Office (SFIO) under Section 212 of the Companies Act and file complaints with SEBI, the NSE, BSE, Registrar of Companies, the Ministry of Information and Broadcasting, and the Directorate General of Civil Aviation.

Furthermore, the notice proposes seeking the cancellation of licenses held by the entire Sun Group across its diverse print, broadcast, radio, aviation, and sports sectors, including its media channels, the Sunrisers IPL franchise, and SpiceJet Ltd.

The notice also carries a stark warning of potential prosecution against several senior professionals named in the document, including financial advisors, auditors, company secretaries, and former officials, for their alleged roles in enabling or concealing these transactions.