Zee Entertainment seeks Rs 69 crore refund from Star after failed ICC TV deal
Zee Entertainment Enterprises has accused Walt Disney-owned Star India of violating the ICC TV rights agreement and has sought a refund of Rs 69 crore paid as part of the agreement.
Zee asserted in its Q3 financial statements that it has strong grounds to counter Star India's claims in the ICC TV rights agreement matter. The company added 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.
Star India has sent letters to Zee through its legal counsel accusing the company of breaching the ICC TV rights agreement due to the non-payment of $203.5 million in the first installment of the rights fee along with the payment of the bank guarantee commission deposit of Rs 17 crore.
Zee, on the other hand, has accused Star of failing to comply with the agreement due to its inability to obtain necessary approvals and execute necessary documents and agreements.
The company claimed that the agreement was contingent on financial commitments, bank and corporate guarantees, and final ICC approval for the sub-licencing deal.
«The management 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,» Zee said in its note to the financial statements.
«The company said it has communicated to Star that the alliance agreement cannot be proceeded with for the reasons set out above and has also sought a refund of Rs 68.54 crore paid to
