Two years after media mogul Subhash Chandra first made a bid to acquire the floundering news agency United News of India, and following protracted legal battles and widespread protests that divided India’s media community into two camps, the Essel Group chairman has decided not to pursue the embattled property anymore. Following an out of court settlement with petitioners, including the ABP Group and The Hindu publisher Kasturi & Sons Ltd, who contested Chandra’s acquisition of a controlling stake in the news agency, UNI has paid back Rs27 crore of the Rs32 crore that was paid to acquire a controlling stake. The remaining amount, which has already been spent, will be paid back in instalments, according to a person familiar with the agreement.
“All the shareholders were consulted before we were offered the stake. But once we entered, then some companies like ABP and The Hindu did not like it and the matter went to court. We have cooperated on every decision by the board but now the company has reached a stage where it is not even able to pay salaries. We could have waited for another ten years in litigation, but the prospects of revival for the company was going down by the day, so we have decided to withdraw,” said Jawahar Goel, a member of the UNI board representing Media West Pvt. Ltd, the Essel Group company that acquired the UNI stake. Goel is also the younger brother of Subhash Chandra. Goel said the group will not pitch for the reelection of the four directors representing the group in the forthcoming annual general meeting of UNI. Apart from Goel and Chandra, Media West representatives on UNI board were P.C. Lahiri and C.S. Vishwanathan.
Chandra is a pioneering entrepreneur in the Indian media space known for moving first to capture the potential of emerging technologies. He owns a significant slice of India’s media pie, with holdings including the Zee network of satellite television channels, direct-to-home market leader Dish TV India Ltd, cable distribution firm Wire and Wireless India, Agrani Satellite Services and part ownership of Mumbai-based daily Daily News and Analysis
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