Saturday, June 11, 2011

Media empire in danger as Marans get entangled in their own cables

Politics in Tamil Nadu has never been free of scams but the 2G scam is unlike any other. No other scam has impacted the political trajectory of the state like this one.

Many DMK politicians have become entangled in the case, with the latest being the Maran duo. The probe has not only shaken Karunanidhi's vast political estate but also threatens to deal a body blow to the Marans' entertainment empire — built allegedly by questionable means.

After the disgraced former Telecom Minister A Raja, the heat is on his predecessor Dayanidhi Maran. From running a night club, Hell Freezes Over (HFO), he was catapulted into politics as a heir of the Maran family and in 2004 he was made a Cabinet Minister to preside over Sanchar Bhawan disregarding criticism over conflict of interest.

The phenomenal growth of the Marans as media czars and their leapfrogging into various businesses is illustrative of the interplay of politics and business.

It is a story of incredible growth wherein political power has been sought to be converted into private profit.

In the past, whenever his grand nephews were targeted, DMK patriarch M Karunanidhi used to defend them saying it was all through hard work. "I have seen Kalanithi Maran carrying a video camera like an ordinary employee. Now, he has come to this level," had been his routine defence. That was when the US returned Kalanithi launched a video magazine Poomalai (garland) in 1990. For this venture no one was recruited as employees of the Marans- owned publications — Kungumam , Vannathirai and Muthaaram — were reportedly asked to double their work. This practice was not given up in the initial days of Sun TV which commenced operations in 1993. Those employees who worked for the channel were said to be given an additional honorarium of Rs 500.

There were allegations that the Marans were able to secure a Bank loan for this project with the support of the party. No wonder that the Karunanidhi family too had stakes in this and the Sun TV office was housed in the DMK headquarters, Anna Arivalayam.

Yet, the first two years were a struggle as DD remained dominant. However, things turned in their favour with the DMK's return to power in 1996.

This period witnessed the Marans virtually monopolising the cable industry shortly after launching Sumangali Cable Vision ( SCV) in 2000. Operators were forced to be their clients and rival MSOs like Hathway, which had 60 per cent market share had to leave the state. Needless to say, creation of such a vast network would not have been possible without the DMK being in power.

Monopolising distribution is yet another way of effectively controlling the flow of information and news. For no reason, DD never cared to switch over to cables which eventually consigned it to the margins. And, herein lay the danger of such a monopoly.

Adding up to this was Dayanidhi becoming the IT and Telecom Minister. In fact, the DMK fought for it and the patriarch, throwing political niceties to the wind, disclosed to the media the pact with the Congress to grab the coveted portfolio! Now, the past has come to haunt the Marans. NRI tycoon C Sivasankaran, who was initially engaged in the sale of computers and made big bucks with the blessings of Murasoli Maran, has turned his back on the Maran duo. L'affaire Maxis is threatening to eclipse both the Maran brothers.

While Dayanidhi's days in the cabinet appear to be numbered, his elder brother too might not escape culpability if Maxis's massive investments in the Sun TV group are proved to be a quid pro quo for allotment of spectrum.

For her part Jayalalithaa has made it clear that she is out to finish their reign by reviving the Arasu Cable TV and by nationalising the cable industry. Can the duo survive the double whammy? Having earned more enemies than they could take on, the Marans now find themselves in a quicksand of their own making.

Reproduced From Mail Today. Copyright 2011. MTNPL. All rights reserved.

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