Zee Seeks Rs 69 Cr Refund From Star Following ICC TV Deal Failure: Report

Zee Entertainment Enterprises has reportedly demanded Rs 69 crore in refund from Star after the TV rights deal for ICC failed. The refund is part of the agreement between the two, according to Zee in its Q3 financial statements.

Zee said that it has strong grounds to counter Star's claims in the matter of the ICC deal. As per the agreement, Zee reportedly said that it has accrued Rs 72 crore for bank guarantee commission and interest expenses for its share of bank guarantee and deposit.

Star India's legal counsel has reportedly sent letters to Zee, holding the latter accountable for the ICC TV rights deal failure by defaulting on its $203.5 million payment as the first instalment. Star India has also accused Zee of not paying Rs 17 crore as a bank guarantee commission deposit

Zee has counter-accused Star of not upholding the agreement by failing to obtain approvals and executing necessary documents and agreements, according to a news report. It stated that the agreement hinged on financial commitments, bank and corporate guarantees, and final ICC approval for the sub-licencing deal.

"The management believes that Star, by its conduct, has breached the Alliance Agreement and is in default of the terms thereof, and consequently, the contract stands repudiated," said Zee.

Zee reportedly said that it has conveyed to Star that the alliance agreement hence cannot be taken forward and has sought a refund of Rs 68.5 crore that it has paid to Star.