Why Zee Entertainment is facing insolvency plea by IDBI Bank
What's the story
Zee Entertainment Enterprises (ZEEL) is facing an insolvency petition from IDBI Bank. The application was filed with the Mumbai Bench of the National Company Law Tribunal (NCLT), claiming a default of ₹225.23 crore. It is related to a Debt Service Reserve Agreement pertaining to credit facilities availed by Siti Networks Ltd. The petition, that was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, alleges that ZEEL has defaulted on its obligations as a debtor.
Claim details
Similar petition filed in 2022
Notably, this isn't the first time the bank has filed such a petition against ZEEL. A similar application was filed in 2022 but was dismissed by NCLT on May 19, 2023. An appeal against that order was also rejected by the National Company Law Appellate Tribunal (NCLAT) on April 7, 2025.
Legal response
ZEEL to contest claims
In response to the insolvency petition, ZEEL has strongly disputed IDBI Bank's claims and is taking all necessary steps to contest them. The company has also indicated that it may seek legal remedies against the bank for malicious prosecution, defamation, and damages. ZEEL considers this application as a mala fide attempt at harassment and disrepute of the company.
Previous attempts
Attempt under Recovery of Debts and Bankruptcy Act dismissed
Apart from the NCLT proceedings, IDBI Bank had also tried to pursue a claim under the Recovery of Debts and Bankruptcy Act, 1993. However, this Original Application was dismissed by the Debts Recovery Tribunal in Delhi. An appeal against this order is still pending before the Debts Recovery Appellate Tribunal in Delhi.
Financial outlook
No financial implications expected by ZEEL
ZEEL is not expecting any financial implications from this application, given the bank's previous unsuccessful attempts to pursue the same claim. The total claim amount stands at ₹225.23 crore, along with further interest at contractual rates upon the footing of compound interest, until payments/realization to the satisfaction of IDBI Bank.