Zee files about Rs 70 cr case against Star India in ICC TV rights dispute

Zee Entertainment Enterprises Limited (ZEEL:), said in regulatory filings, has launched a counterclaim for $8 million plus interest (about Rs 70 crore) against Star India, which is now supported Reliance Industries Limited (RIL). This comes after Star filed a $940 million damages claim in connection with the failed International Cricket Council (ICC) contract, which is currently in arbitration at the London Court of International Arbitration (LCIA).

The counterclaim relates to the Rs 69 crore paid by ZEEL to Star under their agreement. ZEEL said in regulatory filings that the arbitration process is in its early stages as the determination of ZEEL’s alleged liability in the alliance agreement with Star. for the violation is still pending.

On December 23, 2024, ZEEL filed its statement of defense denying all of Star’s claims. A three-member arbitral tribunal appointed by the LCIA is overseeing the dispute. On September 16, 2024, Star filed the case his statement, which included an expert opinion on damages and a witness statement.

Star, formerly owned by Walt Disney before being majority owned by RIL, acquired ICC media rights valued at $3 billion after ZEEL pulled out of the deal.Star is also a shareholder of Walt Disney and Bodhi Tree Systems: Star alleges that ZEEL defaulted on an initial payment of $203.56 million (Rs 1,693 crore) and incurred additional liabilities: 17 billion rubles for bank guarantee commission and deposit interest.

In March 2024, Star initiated arbitration proceedings to enforce the agreement or seek damages. By June 2024, Star decided to terminate the contract and focus on seeking damages from ZEEL, on the other hand, seeking a refund of Rs. contending that the agreement was rendered void by Star’s default.

In July 2024, Star India decided to end its exclusive partnership with Zee Entertainment Enterprises Ltd. This agreement, which included the sub-licensing of the ICC men’s tournament television rights for the 2024-27 cycle, was dissolved due to allegations of contractual violations.

ZEE said Star India terminated the contract on June 20, citing breach of contract.Initially signed on August 26, 2022, this agreement had established ZEE as the main player in the broadcast of important ICC events. , such as the ICC Men’s T20 World Cups and the ICC Men’s Cricket World Cup.

The termination of this partnership follows arbitration proceedings that Star India initiated in March, in which the company sought either specific performance of the agreement by ZEE or compensation for unspecified damages.