IDBI Bank files new insolvency plea against Zee

MUMBAI: IDBI Bank has once again dragged Zee Entertainment Enterprises to the insolvency court. It has filed a fresh application before the Mumbai bench of the company law tribunal to initiate insolvency proceedings against Zee for a default of Rs 225 crore.

Zee has disputed the bank's claim, terming it meritless and an abuse of the legal process. Zee intends to take legal action against IDBI to protect its reputation.

The origin of IDBI's Rs 225 crore claim stems from a debt agreement between the bank and Zee for credit facilities availed by Siti Networks, a company promoted by Zee's founders. Zee was a guarantor to the Siti loan.

According to Zee, in 2022, the bank had previously filed an insolvency case against the company regarding the same debt claim. However, this application was dismissed by the Mumbai company law tribunal in May 2023. The bank then challenged the Mumbai order before the company law appellate tribunal in Delhi, but the appeal was also dismissed in April 2025.

Zee said IDBI also attempted to make a claim of the same debt under the debt recovery act by first filing an original application before the debts recovery tribunal in Mumbai, which was later withdrawn, and then before the debts recovery tribunal in Delhi.

The Delhi debts recovery tribunal dismissed the application in Jan this year and the bank filed an appeal against this order before the debts recovery appellate tribunal in Delhi, which is still pending adjudication.