Thanks all for your help. I really appreciate it.
@gappa: thanks for giving me that link.
I wrote a complaint at consumercourt.in and airtel guys called me. The package activation issue was resolved then. I don't think they will give any refund if i return the STB and dish. I did not ask also. I will be using Airtel for few months(because it has been only one month since i bought). Then i will switch to d2h.
P.S.: Airtel logo is really crappy and annoying. It ruins the whole tv viewing experience. Specially because it is red. We should raise a petition to make it transparent.