Govt slaps Rs 16,000 cr licence fee demand on DTH players; Dish TV, Tata Play, Airtel dig into legal trenches
The I&B Ministry’s sweeping demand revives a long-standing dispute over revenue-sharing norms.
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Following the escalation of a years-long regulatory standoff, the Ministry of Information and Broadcasting (MIB) has issued licence fee demands amounting to nearly Rs 16,000 crore to major direct-to-home (DTH) operators including Dish TV, Tata Play, and Airtel Digital TV. The companies are challenging the basis and quantum of these claims, arguing the demands are not only excessive but also legally disputable.
As per a report by The Economic Times, Dish TV faces a demand of Rs 6,735 crore, Tata Play has been served a notice for Rs 5,257 crore, and Airtel Digital TV is liable for Rs 3,606 crore. These figures include retrospective dues and interest accumulated over the years for allegedly unpaid licence fees since the launch of their services.
At the core of this dispute lies the calculation of licence fees under DTH service agreements. As per current MIB norms, DTH operators must pay a licence fee equivalent to 8% of their Adjusted Gross Revenue (AGR).
However, operators have long contested what qualifies as "adjusted gross revenue," arguing that the government’s inclusion of non-core revenues and certain exemptions is arbitrary and inconsistent with telecom precedent.
In its recent regulatory filings, Dish TV disclosed in its FY25 financial results that it has been provisioning for the disputed amount, which currently stands at Rs 4,612.69 crore (up from Rs 4,359.43 crore in FY24). The company has maintained that its writ petition challenging the demand remains sub-judice before the Jammu & Kashmir and Ladakh High Court. The development, disclosed in the company’s FY25 results, comes at a time when the long-standing dispute over DTH licence fee computation remains unresolved in court.
Dish TV India received a fresh notice from the Ministry, directing it to pay Rs 6,735.67 crore towards licence fees, including interest, for the period since the grant of its DTH licence up to the financial year 2023-24. The company has challenged the demand, calling the calculation methodology flawed, and highlighted that the matter is sub judice. The demand was communicated via a letter dated April 22, 2025, and includes significant interest accrued over the years.
"In relation to the ongoing dispute with respect to the validity, computation and payment of DTH License Fees between the Company and MIB, a writ petition filed by the Company is pending before the Hon'ble High Court of Jammu & Kashmir and Ladakh wherein inter alia the quantum/ applicability of License Fee and imposition of interest has been challenged by the Company," the DTH operator notified bourses.
The Court had allowed the interim prayer of the Company vide order dated October 13, 2015 which continues to be in force till the pendency of the writ. Similar writs filed by other DTH operators (including the writ petition filed by erstwhile Videocon d2h Limited acquired by the company in 2017-18) are also pending before the Supreme Court of India.
Tata Play, too, is locked in a legal dispute over similar grounds and has previously flagged the ambiguity around AGR definition. Airtel Digital TV is expected to take a similar route, escalating the issue in courts.
