Zee Entertainment Enterprises Limited (ZEEL) is facing an insolvency petition filed by IDBI Bank Limited with the National Company Law Tribunal (NCLT), Mumbai Bench, claiming a default of ₹225.23 crore. The application, filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, alleges that ZEEL has defaulted on its obligations as a financial creditor.
IDBI Bank's claim arises from a Debt Service Reserve Agreement related to credit facilities availed by Siti Networks Ltd. The bank had previously filed a similar application in 2022, which was dismissed by the NCLT on May 19, 2023. An appeal against this order was also dismissed by the National Company Law Appellate Tribunal (NCLAT) on April 7, 2025.
Zee Entertainment stated that it vehemently disputes the bank's claims and is taking necessary steps to contest the application. The company also mentioned that it may pursue legal remedies against the bank for malicious prosecution, defamation, and damages.
The company believes that the current application is a mala fide attempt to harass and cause disrepute to the company and considers the application malicious, fraudulent, and meritless.
In addition to the NCLT proceedings, IDBI Bank had also attempted to pursue a claim under the Recovery of Debts and Bankruptcy Act, 1993. However, the Debts Recovery Tribunal, Delhi, dismissed the Original Application on January 13, 2025, and an appeal against this order is currently pending before the Debts Recovery Appellate Tribunal, Delhi.
Zee Entertainment does not expect any financial implications from this application, considering the bank's previous unsuccessful attempts to pursue the same claim.
The total claim amount is ₹225.23 crore, together with further interest thereon with effect from July 1, 2025 together with applicable interest, penal interest, premia, charges etc. thereon at the contractual rates upon the footing of compound interest until payments/realization to the satisfaction of the Bank.
The company is taking all necessary and appropriate steps to contest the same. The Company may also adopt legal remedies against the Bank including for malicious prosecution, defamation and damages, as may be advised to it.
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