Dish TV Shares Slump On Rs 4,100-Crore Demand Notice For Licence Fee
Shares of direct-to-home operator Dish TV India Ltd. slumped after it received a demand notice from the government for payment of Rs 4,164.05 crore, which includes licence fee and interest.
The Ministry of Information and Broadcasting through a letter dated Dec. 24, 2020 asked the Essel group firm 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.
The I&B Ministry has intimated that basis the accounts of the company and payment made by it towards licence fee from the period from the date of issuance of DTH license till FY2018-19, "an amount of Rs 4,164.05 crore is payable by the company and has directed the company to remit" the amount within a period of 15 days, the filing said.
The said amount includes the license fee payable and accrued interest thereon, it added.
The company said it is studying the communication 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 company said adding it will update the exchanges in the event of any material developments that take place in relation to this.
Dish TV had received DTH licence in October 2003.
Shares of Dish TV fell as much as 9.5% to Rs 13.35 before paring losses, even as the NSE Nifty Media Index rose as much as 1.23% to 1.658.35. The Dish TV stock has fallen more than 5% in two of the last four sessions.