Zee Entertainment (Zee) on Wednesday said IDBI Bank had filed a fresh application before the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company over a default of over Rs 225 crore.
Zee has denied the claims, and said it may take legal action against the bank for malicious prosecution, defamation and damages.
The claim is associated with the credit facilities availed by Siti Networks from the bank.
Repeat legal battle with IDBI
This is the second time that IDBI Bank has moved the NCLT against Zee. In 2023, the NCLT had dismissed IDBI Bank’s insolvency plea against the company. The bank lost its appeal in the NCLAT, New Delhi, where the matter was dismissed.
“Clearly, the present application is with mala fide intent to harass and cause disrepute to the Company. The Application is malicious, fraudulent and meritless and an abuse of the process of law,” Zee said in an exchange filing on Wednesday.
Speaking about the possible financial impact on the company, Zee said that it did not expect any financial implications from the matter. “Given that the Bank has lost in earlier rounds, we do not expect any financial implication,” it said.
Zee shares were down over 1% intra-day on Wednesday, before closing at Rs 114.55 apiece on the BSE, down 0.48% versus the previous day. IDBI Bank shares were up over 2% at Rs 94.77 apiece.
Business outlook and growth plans
In Q1FY26, Zee’s advertising revenue dropped 17% year-on-year to Rs 759 crore, with domestic ad revenue falling 19% due to an extended sports calendar and reduced FMCG spending. The company has said that it is looking at around 8-10% revenue growth and 18-20% Ebitda margins in FY26. The company has also said that it will focus on new initiatives to boost growth and profitability this will include new business verticals to expand its target audience and increase revenue streams from micro dramas, live events, emerging sports, and more.