Shares of Sun TV Network witnessed a sharp decline of over 5% in early trading hours on Friday, following reports of a legal spat between brothers and prominent political-business figures — Kalanithi Maran and Dayanidhi Maran.

The sudden sell-off came after DMK MP Dayanidhi Maran sent a legal notice to his elder brother, accusing him of fraudulent acquisition of majority control in Sun Group’s flagship channel, Sun TV.

According to an IANS report, Dayanidhi Maran has alleged that back in 2003, when Sun TV was still a private limited company, Kalanithi Maran wrongfully acquired 1.2 million shares at just Rs.10 each. This, the notice claims, was done despite the company’s valuation being pegged around Rs.3,500 crore at the time. The move allegedly allowed Kalanithi to secure dominant ownership, sidelining other stakeholders — including Dayanidhi.

The matter, which dates back more than two decades, has now surfaced in the public domain, raising fresh concerns over promoter-level governance at the media conglomerate. Dayanidhi’s legal notice reportedly urges regulators including SEBI, SFIO, the Reserve Bank of India, and the Registrar of Companies to investigate the share transfers and potential financial improprieties. The MP has demanded restoration of the pre-2003 shareholding pattern, citing “abuse of trust and misappropriation.”

In response, Sun TV issued a statement clarifying that there is no ongoing dispute and that all transactions mentioned in the legal notice took place when the company was privately held. The company further stated that those share allotments were fully legal, vetted by auditors and tax consultants.

However, the market reaction was swift and adverse. Sun TV shares slipped as much as 5.25 percent to Rs.581.55 before partially recovering. At close of trade, the scrip still hovered 3 percent lower, reflecting investor unease over the potential regulatory ramifications and the optics of a high-profile family feud spilling into the public domain.

This development adds to the pressure already building around media stocks amid a volatile economic backdrop. Analysts say that while the fundamentals of Sun TV remain steady, the uncertainty caused by the public nature of the Maran brothers’ legal clash could influence investor sentiment in the near term.

The Maran brothers — grandsons of DMK founder M. Karunanidhi — have played prominent roles in India’s political and media landscapes. While Kalanithi steered Sun TV Network to become one of the country’s biggest regional broadcasters, Dayanidhi held the post of Union Minister for Communications and IT in the UPA government. Their fallout, now formalised through legal notices, reflects both the complexity of family-run enterprises and the far-reaching consequences such disputes can have on listed firms.