Zee Entertainment Claims Against RailTel Rejected by Arbitral Tribunal

Zee Entertainment Enterprises is a media giant based in India. With its headquarters in Mumbai, the company is involved in various sectors, including television, print, digital media, film, and mobile content. It operates a total of 45 channels across the globe.

Zee Entertainment has lost their claims in the arbitration against RailTel Corporation

Zee Entertainment, along with its subsidiary Margo Networks, has forfeited its claims in the arbitration proceedings against Navratna PSU RailTel Corporation of India. The arbitration tribunal, which was established to address the disagreement concerning the termination of the content-on-demand (COD) contract, dismissed Margo Networks’ claim. “In this regard, we would like to inform you that the Arbitral Tribunal, through its Arbitral Award, has denied the claims presented by the Company and Margo against RailTel,” stated a regulatory filing from Zee Entertainment.

About Arbitral Tribunal

Zee Entertainment Enterprises Ltd. (ZEEL) and its subsidiary have begun arbitration proceedings, contesting Railtel’s “wrongful termination of the Content on Demand Agreement” and seeking recovery of the amounts that were improperly withheld by the public sector entity.

Additionally, the Arbitral Tribunal has dismissed the counterclaims put forth by Railtel, the statement continued. “The company is considering the possibility of submitting an application or appeal to the relevant court in order to overturn the arbitral award,” it noted.

About Margo Networks COD

Margo Networks, a division of ZEEL, had established a content-on-demand (COD) agreement with RailTel Corporation of India to supply media content at all railway stations equipped with Wi-Fi. 

RailTel cancelled the contract, which was set up as a build-own-operate arrangement for a decade, as ZEEL disclosed in a regulatory filing back in November 2021. In response, ZEEL began legal action.

Stock price of ZEEL Up By 3%

Zee Entertainment Enterprises Limited (ZEEL) stock is currently trading at Rs. 123.60 per share, up 3% in the intraday segment, with the highest traded price so far being Rs. 124.20.

Railtel Corporation of India Ltd.’s stock is 4% up

Railtel Corporation of India Ltd. (RAILTEL) stock is currently trading at Rs. 406.45, up 4% from the high traded price of Rs. 412.00 per share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.