NCLT Revokes Previous Approval for Zee and Sony Merger

The National Company Law Tribunal (NCLT) has revoked its earlier approval for the merger plan implicating Zee Entertainment Enterprises and Sony Group Corporation's Indian media subsidiaries, Culver Max Entertainment and Bangla Entertainment. 

The order issued by the Mumbai bench of the NCLT on September 5 effectively ends the failed merger deal, which had the prospective to form India’s second-largest media and entertainment company, rivaling the proposed Star India-Viacom18 merger.

On August 29, Zee submitted an application to the Mumbai bench of the NCLT, requesting the recall of the NCLT's order from August 10, 2023, which had authorized the scheme of arrangement.

The division bench of Justices Charanjeet Singh Gulati and Lakshmi Gurung of the NCLT approved and resolved Zee's appeal, which requested that all relevant regulatory and statutory authorities, including the Registrar of Companies, Mumbai, and the Collector of Stamps, Enforcement-I, Mumbai, take action based on the order copy.

"Accordingly, this bench allows the withdrawal of the scheme of amalgamation and hereby recalls the order dated 10.08.2023," the bench said in its order.