Mumbai: Zee Entertainment Enterprises Limited (ZEEL) has filed a counterclaim for $8.06 million, plus applicable interest, against Star India, now part of Reliance Industries Limited (RIL), in an ongoing arbitration at the London Court of International Arbitration (LCIA). The case arises from a dispute over broadcasting rights for the International Cricket Council’s (ICC) men’s global events.
In a regulatory filing, ZEEL stated: “The Company has also filed a Statement of Defence, counter claim of USD 8.06 million and interest on the counter claim amount before the Arbitral Tribunal. The management, based on a legal opinion and its internal assessment, has determined that the Company is not in default of the Alliance Agreement and believes that the claims made by Star are unfounded and legally not tenable. The Company has strong and valid grounds to defend any claims in respect of the above matter.”
The disagreement originates from an Alliance Agreement signed on August 26, 2022, which granted ZEEL sub-licensing rights for ICC Men’s tournaments for 2024–2027, including marquee events like the T20 and ODI World Cups. Star India had earlier filed a damages claim of $940 million, alleging that ZEEL breached the agreement by failing to pay $203.56 million (₹1,693 crore) and incurring ₹17 crore in additional obligations for bank guarantee commissions and deposit interest.
Timeline of Events
- March 2024: Star India initiated arbitration proceedings, seeking either enforcement of the agreement or compensation for damages.
- June 20, 2024: Star terminated the agreement, citing contractual breaches, and pivoted to recovering damages.
- December 23, 2024: ZEEL submitted its statement of defence, rejecting Star’s claims as unfounded and legally untenable.
ZEEL has also demanded a refund of ₹69 crore, asserting that the agreement was void due to Star’s non-fulfillment of obligations.
Star India, which secured ICC media rights valued at $3 billion after ZEEL withdrew from the agreement, contends that ZEEL’s alleged contractual breaches caused significant damages. The company is seeking enforcement of the original terms or compensation for its losses.
The arbitration is being conducted under the purview of the LCIA, with a three-member arbitral tribunal overseeing the case. Both parties have presented their claims and counterclaims, with proceedings expected to intensify as they seek to resolve the high-stakes dispute.
