IANS reports that the filmmaker was honoured at the birthplace of the late Kishore Kumar, at a ceremony held on October 13 in Khandwa.
Speaking at the event, Cultural Minister Laxmikant Sharma announced: "By agreeing to accept this award Mr Yash Chopra has added to the reputation of MP as a state.
"He is one such great director whose films have been socially relevant since more than 50 years."
The Veer Zaara director was presented with a traditional shawl and a cash prize by Sharma.
Chopra's achievements in film were also recognised in July this year by the School of Oriental and African Studies (SOAS) in London.