Zee Entertainment disputes IDBI Bank’s ₹225 crore insolvency claim, terms it fraudulent

Zee Entertainment Enterprises Limited on Wednesday (September 10) said it has received an insolvency application from IDBI Bank Limited before the National Company Law Tribunal (NCLT), Mumbai, seeking initiation of the corporate insolvency resolution process.The bank, claiming to be a financial creditor, has alleged a default of ₹225.23 crore. The claim is based on a debt service reserve agreement related to credit facilities availed by Siti Networks Ltd. Zee Entertainment disputes the claim, calling it malicious, fraudulent, meritless and an abuse of the legal process aimed at harassing and causing disrepute to the company.

The company noted that IDBI Bank had earlier filed similar insolvency applications in 2022 before NCLT, which was dismissed on May 19, 2023. An appeal by the bank before the National Company Law Appellate Tribunal (NCLAT) was also dismissed on April 7, 2025.

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Additionally, the bank’s attempts to pursue claims under the Recovery of Debts and Bankruptcy Act, 1993, before debt recovery tribunals in Mumbai and Delhi were dismissed, with appeals pending but not favourable to the bank.The current claim includes the principal amount of ₹225.23 crore along with interest, penal interest, premia and other charges at contractual rates calculated on compound interest from July 1, 2025.

Zee Entertainment stated that it does not expect any financial implications from this claim, as the bank has already lost in earlier proceedings. The company is taking steps to contest the application and may adopt legal remedies, including actions for malicious prosecution, defamation and damages.

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Shares of Zee Entertainment Enterprises Ltd ended at ₹114.55, down by ₹0.55 or 0.48%, on the BSE today, September 10.