Music Broadcast Limited has informed stock exchanges about receiving a GST demand order worth ₹89.63 lakh from tax authorities in Lucknow, Uttar Pradesh. The regulatory disclosure was made under Regulation 30 of SEBI Listing Regulations.

GST Demand Order Details

The demand order was issued by the Office of Deputy Commissioner, Lucknow Sector-2, Lucknow (A), Lucknow I, Uttar Pradesh under Section 73 of IGST/CGST/SGST Act, 2017 in Form GST DRC-07 for the financial year 2021-22.

Company's Response and Impact Assessment

Music Broadcast Limited has announced its intention to file an appeal against the GST demand order. The company stated that it expects no material impact on its financials, operations, or other activities due to this order.

Based on preliminary assessment and legal advice received, the company believes it has reasonable grounds and merits in the matter. Music Broadcast expects a reasonable chance of success in the proposed appeal and accordingly does not anticipate any material adverse financial impact at this stage.

Regulatory Compliance

The disclosure was made in compliance with SEBI Listing Regulations. The company has assured its commitment to prioritizing compliance with applicable provisions of Listing Regulations.

Music Broadcast Limited , the company behind Radio City, has secured a significant legal victory with the Division Bench of the Madras High Court delivering a favorable judgment on December 10, 2025. The court's decision has set aside multiple contempt orders and ruled that contempt jurisdiction was not maintainable in the ongoing copyright dispute.

Court Delivers Favorable Judgment

The Division Bench of the Madras High Court, through its common judgment dated December 10, 2025, allowed the Letters Patent Appeals filed by the company and set aside orders dated July 31, 2024, and August 26, 2025, in contempt petitions passed by the Single Judge of Madras High Court.

Key Rulings in Company's Favor

The court's judgment delivered several crucial rulings that benefit Music Broadcast Limited:

Relief from Financial Obligations: The directions issued by the Single Judge, including the requirement to deposit 50% of the alleged royalty dues and the requirement to furnish historical music play logs and compute alleged royalty amounts, have been set aside and no such obligations survive.

Contempt Jurisdiction Ruling: The court held that contempt jurisdiction was not maintainable in the present facts, particularly as the underlying order in the Civil Miscellaneous Appeals is presently under consideration before the Supreme Court and the alleged monetary liability is unquantified.

No Financial Impact: According to the company's disclosure, no financial impact arises from the impugned contempt orders, which have now been set aside.

Background of the Litigation

The litigation stems from a complex copyright dispute involving music licensing fees. The case involves multiple parties including Phonographic Performance Limited (PPL) and South Indian Music Companies Association (SIMCA), with the core issue being the determination of royalty rates for music broadcasting.

The Copyright Board had initially fixed licensing fees, which were subsequently challenged through various appeals. The Madras High Court had earlier passed a judgment in the Civil Miscellaneous Appeals, which is currently under consideration before the Supreme Court.

Court's Reasoning

The Division Bench emphasized that when the amount has not been quantified in the final judgment and the original order is under challenge before the Supreme Court, contempt jurisdiction cannot be invoked. The court noted that the proper remedy would be to file an application for issuance of certificate under Section 75 of the Copyright Act, 1957, so that the order could be treated as a decree of the Civil Court.

Regulatory Compliance

Music Broadcast Limited has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has stated that it will continue to provide updates on any material developments in this matter.

This favorable judgment provides significant relief to Music Broadcast Limited by removing the immediate financial obligations imposed through the contempt proceedings while the main case remains under consideration by the Supreme Court.