Zee Entertainment shares in focus as Arbitral Tribunal rejects claim against RailTel

Shares of Zee Entertainment are likely to remain in focus on Wednesday as the Arbitral Tribunal has rejected the company and its subsidiary Margo’s claims against Railtel Corporation regarding the wrongful termination of the content on Demand Agreement.

“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 wrongfuly forfeited by Railtel alongwith 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,” said the company in a filing to the exchanges.

Further, the Arbitral Tribunal has also rejected the counterclaims made by Railtel, the filing added.


Zee Entertainment and Margo Networks, a subsidiary of Zee, initiated the arbitration against the wrongful termination of the Content on Demand Agreement by the RailTel Corporation of India and the subsequent forfeiture of Zee’s Bank Guarantee of Rs 37.17 crore and Margo's Earnest Money Deposit of Rs 74.34 crore, along with other costs of around Rs 59 crore.

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The total dispute amounted to Rs 170 crore.

The arbitration was conducted before Justice (Ret) Nageswara Rao, Justice (Ret) Dr. A K Sikri, and Justice (Ret) M R Shah.

Zee Entertainment Enterprises is likely to file an appeal before the appropriate Court to set aside the Arbitral Award, as reported by ET earlier.

The shares of Zee closed 1.7% higher at Rs 120.60 on the BSE on Tuesday.

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