Some media reports had cast doubts on Astro’s investment in the DTH arm. Astro's owner, through another company, has invested in Aircel in India.
Sun Direct said in a statement that the company “strongly objects to such malicious and derogatory news reporting which are aimed at tarnishing its image and reputation.”
It said that legal action has already been initiated with the respective news media and "we will be filing defamation cases and civil proceedings claiming damages for causing disrepute to Sun Direct against such newspapers."
It further said that certain people with “vested interests” are circulating these “false and defamatory statements” and “we call upon media not to get carried away by such frivolous and false news and information,” the statement read.
Sun Direct said that Sun TV entered into an MoU with the Astro Group way back in January 1997 which was widely reported in many newspapers, when Aircel was not in existence. It said that since the Government of India did not allow the use of KU band transponders for DTH services, the project was put on hold.
It further added that in 1997 neither was Dayanadhi Maran an MP nor a minister. “Which indicates that Astro was interested in doing the DTH business with Sun Network long back, contrary to the claims laid in the news reporting,” it said.
It also added that Dayanadhi Maran is not a shareholder in Sun Direct, and is not connected with the DTH business in any manner. Also, Sun Direct has no connection to Aircel and to link this up is “nothing but a figment of imagination.”