Arbitral Tribunal Rules Against Zee Subsidiary In Its Dispute With RailTel

In the arbitration against the Indian PSU RailTel Corporation, Zee Entertainment Enterprises and its subsidiary have lost their claims. On November 26, Zee announced that Margo Networks, a subsidiary, had suffered a setback when their claims against Navratna PSU Railtel Corporation of India were denied by the Arbitral Tribunal.

The allegations concerned Railtel's claimed monetary forfeiture and the improper termination of a Content on Demand Agreement. The business and RailTel Corporation of India signed a content-on-demand agreement for the provision of audiovisual content in all train stops with Wi-Fi. The contract was terminated by RailTel in November 2021.

In the same arbitration procedures, Railtel filed counterclaims, which the Tribunal likewise rejected.

"Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation to our earlier disclosure dated August 22, 2023 wherein it was informed that the Company and Margo Networks Private Limited ('Margo') a subsidiary of the Company, have initiated arbitration proceedings against wrongful termination of the Content on Demand Agreement by the Railtel Corporation of India Limited (‘Railtel’) and claimed the amounts wrongfully forfeited by Railtel along with cost/damages. This is to inform you that the Arbitral Tribunal vide its Arbitral Award has rejected the said claims filed by the Company and Margo against Railtel. Further, the Arbitral Tribunal has also rejected the counterclaims made by Railtel," the company said in a regulatory filing.

It added, "The Company is evaluating the option of filing an application/appeal before the appropriate Court for setting aside of the Arbitral Award."