Zee files $8 million counterclaim against Star India in ICC rights arbitration

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 Company has also filed 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 above matter,” ZEEL said in a regulatory filing. 

The dispute stems from a failed agreement regarding broadcasting rights for the International Cricket Council’s (ICC) men’s global events. Star had earlier filed a damages claim of $940 million, alleging breach of the Alliance Agreement. ZEEL, in its regulatory filing, stated that it is not in default of the agreement and has termed Star’s claims as unfounded and legally untenable.

On December 23, 2024, Zee Entertainment Enterprises Limited (ZEEL) submitted its statement of defence, rejecting all claims made by Star India in their ongoing arbitration. The case, overseen by a three-member arbitral tribunal appointed by the London Court of International Arbitration (LCIA), centers on a dispute over broadcasting rights for the International Cricket Council’s (ICC) men’s global events.

Star India, now majority-owned by Reliance Industries Limited (RIL), acquired ICC media rights valued at $3 billion after ZEEL withdrew from the agreement. Star alleges ZEEL failed to pay $203.56 million (Rs 1,693 crore) and incurred additional obligations of Rs 17 crore for bank guarantee commissions and deposit interest.

In March 2024, Star commenced arbitration to proceedings seeking either enforcement of the agreement or compensation for damages.By June 20, 2024, Star terminated the agreement, citing contractual breaches, and shifted focus to recovering damages. ZEEL, in turn, demanded a refund of Rs 69 crore, asserting the agreement was void due to Star’s non-fulfillment of obligations.

The deal, originally signed on August 26, 2022, had granted ZEEL sub-licensing rights for ICC Men’s tournaments for 2024-27, including the T20 and ODI World Cups. 

Arbitration proceedings continue under the London Court of International Arbitration.