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ZEEL seeks Rs 69 crore refund from Star India amid ICC contract dispute

ZEEL has counters Star India's $940 million claim with a demand for a Rs 69 crore refund, intensifying the ICC media rights arbitration battle.

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Zee Entertainment Enterprises Limited (ZEEL) has filed a counterclaim for $8 million, plus interest (approximately Rs 70 crore), against Star India, now backed by Reliance Industries Limited (RIL), following a $940 million damages claim filed by Star in connection with a failed International Cricket Council (ICC) contract. The case, which is currently being arbitrated at the London Court of International Arbitration (LCIA), revolves around a payment of Rs 69 crore made by ZEEL to Star under their agreement.

In a regulatory filing, the company stated that the arbitration process is still in its early stages, with the determination of the company's alleged liability for breaches of the alliance agreement with Star pending. On 23 December 2024, the company filed its statement of defence, rejecting all claims made by Star. The dispute is being overseen by a three-member arbitral tribunal appointed by the LCIA. Star had filed its statement of case on 16 September 2024, which included an expert report on damages and a witness statement.

Star, which was previously owned by Walt Disney and is now majority owned by RIL, acquired the ICC media rights worth $3 billion after ZEEL withdrew from the agreement. Star claims that ZEEL failed to make an initial payment of $203.56 million (Rs 1,693 crore) and incurred additional obligations, including Rs 17 crore in bank guarantee commissions and deposit interest. In March 2024, Star initiated arbitration proceedings to either enforce the agreement or seek damages. By June 2024, Star opted to terminate the agreement and focus on claiming damages from ZEEL. 

In response, ZEEL demanded a refund of Rs 69 crore, arguing that the agreement became void due to Star’s failure to meet its obligations. In July 2024, Star ended its exclusive partnership with ZEEL, which had involved sub-licensing linear TV rights for the ICC Men’s tournaments for the 2024-27 cycle, citing breaches of contract. This decision followed arbitration proceedings initiated by Star in March, seeking either the enforcement of the agreement or compensation for unquantified damages.

ZEE Star India ICC contract dispute