Arbitral Tribunal Dismisses Zee Entertainment's Claims Against RailTel

Zee Entertainment and its subsidiary Margo Networks have lost their arbitration case against Navratna PSU RailTel Corporation of India. Margo Networks' claim was dismissed by an arbitration tribunal appointed to resolve a disagreement over the PSU's termination of the content-on-demand (COD) contract.

"This is to inform you that the Arbitral Tribunal, by its Arbitral Award, has rejected the said claims filed by the Company and Margo against Railtel," according to Zee Entertainment's regulatory filing.

Zee Entertainment Enterprises Ltd (ZEEL) and its subsidiary had filed arbitration proceedings against Railtel, alleging "wrongful termination of the Content on Demand Agreement" and claiming the amounts wrongfully forfeited by the public sector undertaking.

Furthermore, the Arbitral Tribunal rejected Railtel's counterclaims, it stated.

"The corporation is exploring the option of filing an application/appeal before the competent Court for setting aside of the Arbitral Award," the statement continued.

Margo Networks, a subsidiary of ZEEL, signed a content-on-demand (COD) contract with RailTel Corporation of India to provide media content in all Wi-Fi-enabled railway stations.

RailTel terminated the 10-year build-own-operate deal, which ZEEL previously disclosed in a regulatory filing in November 2021.

Following this, ZEEL began legal actions.