TV Today has decided to file a new writ petition in Delhi High Court in relation to sell Oye FM to Entertainment Network India Ltd (ENIL). This deal has been denied by Ministry of Information and Broadcasting (MIB) already.
In its new petition, TV Today has challenged MIB’s earlier order. It has contested that out of Oye FM’s seven radio stations, only three have an overlap with ENIL-owned Radio Mirchi. The remaining four stations escape the multiple frequency clause and, hence, MIB should clear ENIL’s acquisition of these.
The four Oye FM stations which should get the green signal from the MIB are Shimla, Patiala, Amritsar and Jodhpur. Radio Mirchi does not have a presence in these four cities. As per the guidelines, the Phase II policy does not permit multiple frequencies in one city by a single operator.
TV Today’s second contention is that Radio Mirchi is already in Phase III and, thus, can hold multiple frequencies in one city. Considering this, the MIB should permit Radio Mirchi to even own Oye FM’s remaining three cities. These are Delhi, Mumbai and Kolkata. As per the Phase III guidelines, a FM radio operator can hold multiple frequencies in one city.
TV Today contented that there would be no change in the shareholding pattern of the company as it is a slump sale and, hence, the lock in period should not apply.