Taking cognizance of mounting evidence that sting operation conducted on a local woman school teacher may be fake, the Information and Broadcasting ministry has issued a showcause notice to Live India channel, which telecast it.
"The channel has been issued showcause notice for violation of programme and advertising code prescribed under the Cable Television Network Act," a senior I&B ministry official told PTI.
Live India has also been asked to submit its reply by Friday, the official said.
The "expose" by the channel had depicted a Daryaganj school teacher Uma Khurana in a sex racket involving students that led to a mob fury and rioting in the streets.
But the "expose" fell apart with evidence that the teacher was framed by reporter Prakash Singh, his accomplice Rashmi Singh and her friend Virender Arora.
The Programme Code in the Act is binding on the channel broadcasters as per uplinking and downlinking guidelines.
The punishment of violation may lead to suspension of licence for a limited period and can go up to revocation of licence, along with the fine.
The channel may come in the preview of the Code which says that no programme will be aired which "offends against good taste or decency... contains anything obscene, defamatory, deliberate, false and suggestive innuendos and half-truths.