Star India claims $940 million from Zee Entertainment, the case is related to cricket broadcasting

The Indian unit of Walt Disney, Star India has claimed damages worth $940 million from Zee Entertainment Enterprises in a London arbitration court. As per the claims of Star India, the media firm owned by Punit Goenka has defaulted on the amount it was supposed to pay for cricket broadcasting rights. Star has also claimed costs, expenses, and interest applicable on it till the time full payment is made in this case.

On the other side, Zee has rejected Star India's claims of damages and therefore, it has also said that it is going to oppose the claim. The Mumbai-listed broadcaster said in a regulatory filing, "The arbitration is at a preliminary stage and the London tribunal is yet to decide whether the company is liable in any manner."

In March this year, Star had moved the London Court of International Arbitration as Zee had failed to comply with an agreement dated August 26, 2022. Under this agreement, it was to hand over the television broadcast licence for ICC tournaments to Zee for four years, that is from 2024 to 2027.

However, six months later in September, Star terminated the agreement with Zee and demanded a penalty of $940 million by August 31 along with other charges. Zee said on Wednesday, "We will strongly oppose all unfounded claims of Star on the merits and reserve all our rights." According to Zee, Star has violated the agreement and should pay $685 million. In January this year, Zee did not make its first payment to Star as it was allegedly not in a position to pay.