Shares of Zee Entertainment Enterprises Ltd. (ZEEL) dropped 3% from a day’s high of Rs 134.45 on 18th September. The company informed the stock exchanges that it would strongly contest all unfounded claims by Disney-owned Star India and reserves all its rights.

Star India has filed a claim for damages amounting to $940 million (nearly Rs 8,000 crore) against Zee Entertainment.

Zee Entertainment has denied all claims and stated that the arbitration is at an early stage. The London Court of International Arbitration (LCIA) has not yet decided if Zee is liable. Star India seeks to declare that its alliance agreement with Zee has been validly terminated.

The London Court of International Arbitration (LCIA) is a private, not-for-profit organisation that resolves commercial disputes through arbitration and other methods.

On 14th March, Star India initiated arbitration proceedings against Zee Entertainment before the LCIA.

On 26th August, 2022, Star India and Zee entered into an alliance agreement for sublicensing ICC TV rights for Men’s and Under-19 global events until 2027.

Zee did not proceed with the agreement due to the collapse of its merger deal with Sony Pictures Networks India. As an independent entity, Zee found it difficult to manage the ICC TV rights deal.

Zee informed Star India that it could not continue with the alliance agreement and requested a refund of Rs 69 crore, which it had already paid.

At 2:01 PM, the shares of Zee Entertainment were trading 1.27% lower at Rs 131.29 on NSE.

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