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The Madras High Court has declined to grant an interim stay on the order of the Information and Broadcasting Ministry cancelling Kal Cables’ multi system operator licence while posting further hearing to September 2.
However, the court exempted it from running a scroll informing subscribers of the impending closure of services but said the 15-day deadline by the Ministry to wind up operations will remain for now.
Kal Cables, part of the media conglomerate Sun TV Network group, operates largely in Chennai with a subscriber base of around 10 lakh. It distributes satellite TV channels through cable to subscribers under the brand Sumangali Cable Vision (better known as SCV). Following a notice from the Ministry cancelling the registration of Kal Cable as multi system operator (MSO), the company moved the court to quash the order and sought an interim stay.
Kal Cables also contended that it was not given an opportunity to present its case before the Ministry. The company argued that the Union Government had not issued any showcause notice to the company prior to cancelling the licence.
The case, which came up for hearing on Thursday, was adjourned as the counsel for the Union Government submitted that he has not received the Home Ministry report.
The Ministry in a letter dated August 20, informed Kal Cables that in view of denial of security clearance by the Ministry of Home Affairs for registration as an MSO , the permanent licence granted to operate in Chennai and provisional licence to operate in DAS notified areas in phase-II cities stand cancelled with immediate effect.
The letter also said as protection of the interest of consumers is one of the mandate of the Ministry, considering the large subscriber base of Kal Cables, the MSO is given 15 days to wind up its operations. It came with a condition that during this period the service provider would run a continuous scroll on the screen that its services would not be available after 15 days so that the subscribers can move over to any alternative platform.
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