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Informist, Tuesday, May 13, 2025

MUMBAI – Zee Entertainment Enterprises Ltd. Tuesday said the Arbitral Tribunal has rejected Aditya Birla Finance Ltd.'s petition against the company regarding loan repayment of INR 1.34 billion. The final award rejecting Aditya Birla Finance's claim against the company was issued on Monday, it said in an exchange filing.

Aditya Birla Finance alleged that Zee Entertainment gave it a letter of comfort for a term loan of INR 1.34 billion granted to Siti Networks Ltd., an Essel group company. When the lender filed the petition in January 2024, Zee Entertainment had claimed it was the corporate guarantor, not the principal debtor in Siti Network's loan, according to media reports.

Aditya Birla Finance had approached the tribunal seeking a declaration that the letter of comfort was a guarantee, contrary to Zee Entertainment's claims. It also said Zee Entertainment should be asked to pay the outstanding loan along with interest amounting to INR 1.75 billion, and/or refund INR 1.08 billion paid by Siti Networks to Zee Entertainment in 2020-21 (Apr-Mar).

Zee Entertainment contested that the INR 1.08 billion paid by Siti Networks to Zee Entertainment was part of the consideration for channels and signals provided by it to Siti Networks in terms of the Interconnection Agreements and Interconnection Regulations issued under the Telecom Regulatory Authority of India's norms.

Zee Entertainment had filed a counter claim with the tribunal for INR 150 million relating to dues owed to it by Siti Networks, which the latter had deposited in a fixed deposit and appropriated by Aditya Birla Finance, it said in a statement. Though the tribunal has ruled on Aditya Birla Finance's plea, it has left the issue of the counter claim open, granting the two parties the liberty to approach the National Company Law Appellate Tribunal, it said.

At 1432 IST, shares of Zee Entertainment were at INR 121.70 on the National Stock Exchange, up almost 4% from Monday.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Anand JC

Edited by Ashish Shirke

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