Dish TV tumbles on receiving demand notice of Rs 4,164.05 cr from govt

Dish TV India slumped 4.59% to Rs 14.16 after the company said that it has received a notice from the government for payment of Rs 4,164.05 crore for licence fee.

Dish TV on Friday in an exchange filing on Friday said, "The Ministry of Information and Broadcasting vide its communication dated 24 December has intimated the company that basis the accounts of the company and payment made towards license fee from the period from the date of issuance of DTH License till Financial Year 2018-19, an amount of Rs 4,164.05 crore is payable and has directed the company to remit the said within a period of 15 days. According the communication dated 24 December 2020, the said amount includes the License Fee payable and accrued interest thereon."

However, the Ministry of Information and Broadcasting mentioned that the amount is further subject to verification and audit and the outcome of various court cases pending before the Telecom Dispute Settlement Appellate Tribunal (TDSAT), High Court of Jammu and Kashmir and the Supreme Court of India, in the matter of DTH License fee.

The company said it is studying the communication of the ministry to determine next steps. "The DTH License fee matter has already been through several rounds of litigation, the final outcomes of which are yet to be argued and concluded," the operator said, adding it will update the exchanges in the event of any material developments that take place in relation to this.

Dish TV India is engaged in the business of direct to home (DTH) and teleport services. The company's segments include dth and teleport service, and infra support services. It is also engaged in the business of broadcasting of other satellite telecommunications activities.

On a consolidated basis, Dish TV's net profit stood at Rs 66.36 crore in Q2 September 2020 as compared to a net loss of Rs 91.36 crore posted in the same period last year. Net sales declined 5.2% to Rs 846.36 crore in Q2 September 2020 over Q2 September 2019.

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