ZEEL disputes IDBI Bank’s insolvency plea over Rs 225 cr claim

Zee Entertainment Enterprises Ltd (ZEEL) has disclosed to the Bombay Stock Exchange (BSE) that IDBI Bank Limited has filed an application before the National Company Law Tribunal (NCLT) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the company, alleging a purported default of Rs. 225.22 crore.

The claim arises out of a Debt Service Reserve Agreement linked to credit facilities extended by IDBI Bank to Siti Networks Ltd. 

ZEEL has called the move “malicious, fraudulent and meritless,” alleging that the application is an abuse of the process of law with mala fide intent to harass and cause disrepute.

This is not the first time IDBI Bank has pursued action against ZEEL over the same debt. 

In 2022, the bank filed an application which the NCLT dismissed on May 19, 2023. IDBI Bank challenged the order before the National Company Law Appellate Tribunal (NCLAT), Delhi, but the appeal was dismissed on April 7, 2025, thereby upholding the NCLT ruling. 

The bank also attempted to recover the dues under the Recovery of Debts and Bankruptcy Act, 1993, by moving the Debts Recovery Tribunal (DRT), Delhi. 

The tribunal dismissed the application on January 13, 2025, and an appeal before the Debts Recovery Appellate Tribunal met the same fate, with the Bank failing to secure any favourable order.

“ZEEL has maintained that it vehemently disputes the Bank’s claims and is taking appropriate steps to contest the matter,” the company said.

It also indicated it may pursue legal remedies against the Bank for malicious prosecution, defamation and damages.

The petition by IDBI Bank claims ZEEL is in default of Rs. 225.22 crore, along with further interest, penal interest, and charges from July 1, 2025, with compound interest until realization. 

However, ZEEL has clarified that it does not expect any financial implication given the Bank’s repeated failures before both NCLT and NCLAT.