Dish TV slips 10% on demand notice of Rs 4,164 crore from govt
The company said 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
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Shares of Dish TV India tumbled 10 per cent to Rs 13.35 on the BSE on Monday, falling 14 per cent in the past two trading days on profit booking after the company said it has received a demand notice from the government for payment of Rs 4,164.05 crore, which includes licence fee and interest.
The stock of the broadcasting & cable TV operator hit a 52-week high of Rs 16.30 on Wednesday in intra-day trade. Prior to two days' decline, the stock had outperformed the market by surging 60 per cent in the month of December.
At 11:45 am, it had erased partially the early morning losses and was trading 6 per cent lower at Rs 13.92 on the BSE. In comparison, the S&P BSE Sensex was up 0.55 per cent at 47,233 points. A combined around 24 million equity shares had changed hands on the counter on the NSE and BSE, so far.
The Ministry of Information and Broadcasting (MIB), through a letter dated December 24, 2020, asked the company to pay the said sum towards licence fee from the period from the date of issuance of DTH licence till the financial year 2018-19, the company said in a regulatory filing.
Dish TV said the company is studying the communication dated December 24, 2020 of the Ministry of Information and Broadcasting 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, it said.
According to company, the Ministry of Information and Broadcasting had issued a demand notice in the year 2014 for the license fee pertaining from the date of issuance of DTH License till Financial Year 12 – 13. The said Demand Notice was challenged by the Company before the Hon’ble Telecom Dispute Settlement Appellate Tribunal (TDSAT) and the said Demand has been stayed by the Hon’ble TDSAT, which stay continues to be in force, it said.
The Ministry of Information and Broadcasting has in its letter dated December 24, 2020, also mentioned that the amount is further subject to verification and audit and the outcome of various court cases pending before the Hon'ble TDSAT, the Hon'ble High Court of Jammu and Kashmir at Jammu and the Hon'ble Supreme Court of India, in the matter of DTH License fee.
The stock of the broadcasting & cable TV operator hit a 52-week high of Rs 16.30 on Wednesday in intra-day trade. Prior to two days' decline, the stock had outperformed the market by surging 60 per cent in the month of December.
At 11:45 am, it had erased partially the early morning losses and was trading 6 per cent lower at Rs 13.92 on the BSE. In comparison, the S&P BSE Sensex was up 0.55 per cent at 47,233 points. A combined around 24 million equity shares had changed hands on the counter on the NSE and BSE, so far.
The Ministry of Information and Broadcasting (MIB), through a letter dated December 24, 2020, asked the company to pay the said sum towards licence fee from the period from the date of issuance of DTH licence till the financial year 2018-19, the company said in a regulatory filing.
Dish TV said the company is studying the communication dated December 24, 2020 of the Ministry of Information and Broadcasting 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, it said.
According to company, the Ministry of Information and Broadcasting had issued a demand notice in the year 2014 for the license fee pertaining from the date of issuance of DTH License till Financial Year 12 – 13. The said Demand Notice was challenged by the Company before the Hon’ble Telecom Dispute Settlement Appellate Tribunal (TDSAT) and the said Demand has been stayed by the Hon’ble TDSAT, which stay continues to be in force, it said.
The Ministry of Information and Broadcasting has in its letter dated December 24, 2020, also mentioned that the amount is further subject to verification and audit and the outcome of various court cases pending before the Hon'ble TDSAT, the Hon'ble High Court of Jammu and Kashmir at Jammu and the Hon'ble Supreme Court of India, in the matter of DTH License fee.
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