IDBI Bank files Rs 225 crore insolvency plea against Zee Entertainment at NCLT

IDBI Bank has filed an insolvency application against Zee Entertainment Enterprises Limited (ZEEL) before the National Company Law Tribunal (NCLT), Mumbai, seeking initiation of the corporate insolvency resolution process for an alleged default of Rs 225.23 crore, reported CNBC TV-18.

The bank has claimed to be a financial creditor, citing a debt service reserve agreement linked to credit facilities availed by Siti Networks Ltd, where the company was a guarantor. The company has reportedly disputed the claim, calling it malicious, fraudulent and meritless, and said it intends to pursue legal action to protect its reputation.

This is not the first time the bank has approached the tribunal on this matter. In 2022, a similar insolvency plea was dismissed by NCLT in May 2023. The bank’s subsequent appeal before the National Company Law Appellate Tribunal (NCLAT) was also rejected in April 2025, the report noted.

In addition to the insolvency route, the bank had attempted to recover the same claim under the Recovery of Debts and Bankruptcy Act, 1993. Applications before the debt recovery tribunals in Mumbai and Delhi were dismissed, with appeals still pending.

The bank’s current claim includes the principal amount along with interest, penal interest, premiums and other charges calculated on compound interest from July 1, 2025. The company said it does not expect financial implications, citing earlier outcomes in its favour, and added that it is taking steps to contest the application, may adopt legal remedies, including actions for malicious prosecution, defamation and damages.