New Delhi, July 22 (IANS): The Delhi High Court on Wednesday granted permission to Red FM channel to participate in the mock auction of FM radio waves.

A bench of Justice Badar Durrez Ahmed and Justice Sanjeev Sachdeva granted permission to Red FM, a company associated with the Kalanithi Maran-promoted Sun TV, to participate in the mock auction scheduled during the day.

The court also sought a response from the central government on the plea by Digital Radio Broadcasting Ltd. against the ministry of information and broadcasting's decision to refuse its radio channel, Red FM, permission to participate in the third phase of auctions.

The court has fixed the matter for July 24 for further hearing.

As per the plea of the company, the application of the company to participate in the auction was rejected as they were not given security clearance by the union home ministry on the ground that Kalanithi Maran, a shareholder in the radio channel, was facing prosecution in a money laundering case.

The court on Tuesday suggested that the government consider postponing the auction, currently scheduled for next Monday, so that it can hear the matter properly.