ZEEL seeks Rs 69 crore refund from Star India over ICC TV rights agreement violation

Zee Entertainment Enterprises (ZEEL) has claimed Rs 69 crore from Star India, owned by Walt Disney, for allegedly violating the ICC TV rights agreement between the two entertainment and media firms.

Zee, in its Q3 financial statement, mentioned that it has strong and valid grounds to defend Star India's claims regarding the ICC TV rights agreement matter.

The company stated that it has accrued Rs 72.1 crore for bank guarantee commission and interest expenses for its share of bank guarantee and deposit as per the agreement.

"During the quarter ended December 31, 2023 and subsequently, Star has sent letters to the Company through its legal counsel alleging breach of the Alliance Agreement on account of non-payment of dues for the rights in relation to first installment of the rights fee aggregating to $203.56 million along with the payment for bank guarantee commission and deposit interest aggregating Rs 1,700 lakh and financial commitments including furnishing of corporate guarantee/confirmation as stated in the Alliance Agreement," the Company said.

Furthermore, it stated that based on the legal advice, the management believes that Star has not acted in accordance with the Alliance Agreement and has failed to obtain necessary approvals, execution of necessary documentation and agreements.

"The management also believes that Star by its conduct has breached the Alliance Agreement and is in default of the terms thereof and consequently, the contract stands repudiated. The Company has already communicated to Star that the Alliance Agreement cannot be proceeded with for the reasons set out above and has also sought refund of Rs 6,854 lakh (Rs 68.54 crore) paid to Star," the Company added.

Zee stated that it doesn't expect any significant adverse impact from the contract repudiation, and there is no need to make any adjustments to the accompanying statement.

Earlier, Zee Entertainment informed the Walt Disney Company that it didn't want to go ahead with the deal to purchase the cricket TV rights that it acquired from the firm.

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