IDBI Bank files fresh insolvency case against Zee Entertainment

Zee Entertainment Enterprises Ltd (ZEEL) has disclosed that IDBI Bank Ltd has filed an application to initiate insolvency proceedings against the company, claiming a default of ₹225.22 crore. The application was filed under the Insolvency and Bankruptcy Code (IBC) before the National Company Law Tribunal (NCLT), Mumbai Bench.

In a regulatory filing to the BSE and NSE on Wednesday, ZEEL strongly refuted the bank’s claims, labeling the application as “malicious, fraudulent, and meritless” and an “abuse of the process of law.” The company stated that the application is driven by a mala fide intent to harass and cause disrepute.

This is not the first time IDBI Bank has pursued this claim. IDBI Bank had filed an insolvency application against Zee Entertainment with the Mumbai bench of the National Company Law Tribunal (NCLT) for defaulting on a payment of Rs 149.60 crore. The plea was dismissed by the NCLT in May 2023. The bank’s appeal against this dismissal was also rejected by the National Company Law Appellate Tribunal (NCLAT) in April 2025.

The purported debt arises from a Debt Service Reserve Agreement related to credit facilities availed by Siti Networks Ltd from IDBI Bank. ZEEL has vehemently disputed its liability in the matter.

The company informed the exchanges that it is taking all necessary steps to contest the latest application and is considering pursuing legal remedies against the bank for malicious prosecution and defamation. ZEEL stated that given the previous dismissals of identical claims by the NCLT and NCLAT, it does not anticipate any financial impact from this new application.

The case highlights the ongoing legal challenges faced by the media giant, even as it asserts its position and prepares a robust defense.

It must be noted that other lenders have also dragged Zee Entertainment to insolvency court. IndusInd Bank had filed an insolvency plea in February 2023 against Zee Entertainment Enterprises for defaulting on a payment of Rs 83.08 crore. Later, the bank settled its dispute with Zee Entertainment in March 2023.

Also See: Zee Group settles Rs 6,500 crore Yes Bank debt; bank takes 75% haircut