Ministry of I&B demands Rs 6,735 crore from Dish TV in licence fee dispute
The DTH operator has challenged the demand, calling the calculation methodology flawed. The matter is sub judice.
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Dish TV India has received a fresh notice from the Ministry of Information and Broadcasting (MIB), 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 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.
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.
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.
"Despite the matter being sub-judice, the Company received a communication dated April 22, 2025 from the MIB, wherein the Company was directed to pay Rs 673,567 lacs towards the license fee since grant of respective DTH Licenses up to financial year 2023-24 (including interest till 31 March 2025)," Dish TV added.
The government, however, has left room for potential revisions, noting that the figure is subject to reconciliation based on the outcome of a CAG audit and multiple pending court cases.
Dish TV’s contention with the MIB over licence fees is not new. Since 2015, the company has been fighting a legal battle in the High Court of Jammu & Kashmir and Ladakh, questioning the validity, quantum, and interest calculations of licence fees under DTH regulations. In October 2015, the High Court granted an interim stay in favour of the company — a protection that remains in force.
The dispute revolves around the 8% annual licence fee levied on Adjusted Gross Revenue (AGR) — a definition the company has contested. The matter became more complex after Dish TV merged with Videocon d2h in 2017-18, which had a similar pending case. Other DTH providers also have writs pending before the Supreme Court.
In FY25, Dish TV reported that it had maintained a provision of Rs 4,612.69 crore (up from Rs 4,359.43 crore in FY24) in its books, primarily due to interest charged as a "time value of money" adjustment — underscoring the growing financial burden from the unresolved dispute.
Further complicating matters, Dish TV also faced scrutiny from the Comptroller and Auditor General (CAG). In January 2023, the company received a letter regarding the audit of licence fee payments. Dish TV challenged the scope of this audit and secured a stay from the High Court on March 2, 2023, which continues to hold.
Dish TV, on May 28, reported a consolidated net loss of Rs 487.66 crore. Annual revenue also fell 15 percent year-on-year to Rs 1,593.95 crore for the full fiscal year ended March 31, 2025.
Additionally, it reported a consolidated net loss of Rs 402.19 crore for the quarter ended March 31, 2025, citing impairment charges on intangible assets as a key factor. The company had posted a significantly higher loss of Rs 1,989.69 crore in the same period a year earlier, according to a regulatory filing.
In a statement, Dish TV said it had recorded an impairment charge totaling ₹335.38 crore for the quarter and full fiscal year, related to intangible assets under development, as well as capital and other advances.
Before accounting for exceptional items and taxes, the company reported a loss of Rs 66.81 crore for the quarter.
Revenue from operations fell sharply by 15.55 percent year-over-year to Rs 343.66 crore, down from Rs 406.95 crore in the March 2024 quarter. Total income declined by 15 percent to Rs 350.35 crore.
Subscription revenue, which forms the bulk of the company’s earnings, declined 16.82 percent to Rs 295.9 crore. Total expenses for the quarter stood at Rs 417.16 crore, representing a 2.16 percent decline from the previous year.
The results highlight the ongoing financial strain faced by legacy broadcast providers amid rising competition from digital streaming platforms and evolving consumer habits.
Despite the unresolved fee issue, the MIB granted Dish TV a provisional DTH licence on March 31, 2021, under updated guidelines. In October 2023, the ministry issued a draft DTH Licence Agreement seeking industry feedback; Dish TV responded with suggested changes in November 2023.
Meanwhile, the company has been battling governance issues. Following a prolonged tussle with Yes Bank and JC Flowers ARC over board control, Dish TV currently has only three board members, falling short of SEBI’s minimum requirement of six. It is in the process of inducting new directors.
