One of India’s most prominent radio brands, Red FM, owned by Sun Group, is set to take legal action against the media regulator after it was denied clearance to bid in the Phase III auction.
The denial of security clearance not only impacts the expansion plans of the company but also creates doubts over the survivability of the brand as the existing license to run its network has already expired as has the extension, which was provided earlier this year. Rival radio brands ENIL, which runs Radio Mirchi , Reliance Broadcast, which runs BIG FM, and HT Media, which runs Fever FM, were all on the final list of qualified bidders for Phase III.
���We at Red FM believe that the ministry has erred in denying us clearance to bid in Phase III,� Nisha Narayanan, COO of Red FM told exchange4media.
Red FM and Suryan FM run 45 stations across India and is the largest private FM network in the country.