Zee Entertainment Enterprises Limited (ZEEL) has demanded a refund of Rs 69 crore from Star India Pvt Ltd following the collapse of their agreement regarding the television rights for International Cricket Council (ICC) events. The demand for reimbursement comes after ZEEL accused Star of breaching the terms of their agreement, as detailed in ZEEL’s third-quarter financial statements for the fiscal year 2023-2024.
According to ZEEL, the dispute arose after it communicated to Star that it could not proceed with the ICC TV rights agreement due to alleged breaches by Star and failure to fulfill contractual obligations. ZEEL stated in its financial report that it had sought the refund of Rs 68.54 crore, previously paid to Star, citing Star’s failure to obtain necessary approvals, execute required documentation and agreements as per the Alliance Agreement between the two companies.
The disagreement stems from an agreement made on August 26, 2022, between ZEEL and Star, outlining the terms for granting sub-license rights for the television broadcasting of ICC Men’s and Under-19 global events from 2024 to 2027. ZEEL emphasized the strategic importance of the acquisition, aiming to solidify its presence across all segments of the media and entertainment industry.
However, ZEEL highlighted that the performance of the Alliance Agreement was contingent upon fulfilling certain conditions precedent, including financial commitments, provision of bank guarantees, and pending final ICC approval for sub-licensing to ZEEL. Despite ZEEL’s assertion of compliance, it accused Star of failing to honor its obligations under the agreement, leading to the repudiation of the contract by ZEEL.
ZEEL disclosed that it had incurred expenses amounting to Rs 72.14 crore for bank guarantee commission and interest in accordance with the Alliance Agreement. Furthermore, Star reportedly claimed breach of contract by ZEEL for non-payment of dues totaling USD 203.56 million (Rs 1693.42 crore), along with bank guarantee commission and deposit interest totaling Rs 17 crore.
While ZEEL’s Board continues to monitor the situation, the company expressed confidence in its legal position and reiterated its preparedness to defend against any claims made by Star. ZEEL emphasized that it does not anticipate any significant adverse impact on its financial statements, asserting that adjustments are unnecessary as the contract has been repudiated. In response to Star’s claims, ZEEL reaffirmed its stance and asserted its readiness to counter any allegations, citing strong grounds to defend its position in the ongoing dispute over the ICC TV rights deal.
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