While Zee Entertainment proceeds with its planned merger with the Indian arm of Japan's media behemoth Sony Group Corp's entertainment division, the filings showed that Zee is dealing with at least a dozen lawsuits, involving cases filed by the Income Tax department, the Commissioner of Service Tax, the Director General of GST Intelligence, and several lenders.

Zee Entertainment, in the filings, said such cases are not "reasonably" expected to have any material financial impact. But, the amounts involved in disputes run into hundreds of crores and are related to issues including non-payment of tax, utilization of input tax credit, and loan repayment defaults.

As per the regulatory filings, private lenders such as Yes Bank, IDBI Bank, and Aditya Birla Finance Ltd have filed separate cases against Zee and other promoter entities. The total amount of liability arising from these cases is around ₹798 crore. These cases are being reviewed before different courts.

Yes Bank's case alleges that Zee, Chandra, Punit Goenka (Chandra's son and MD & CEO of Zee), certain promoter group entities, Axis Bank, and Deloitte Haskins & Sells Llp have breached terms of a LOC with regards to a loan default. The quantum of claim is ₹428.5 crore.

"In the suit, Yes Bank has sought a declaration that a LOC dated 31 May 2016, given by ZEEL to Yes Bank, in respect of a loan given to Living Entertainment Ltd, is a guarantee to Yes Bank and that the ZEEL is liable to pay the entire loan if the borrower defaults," said the filing. The matter is pending adjudication at Bombay high court.

Meanwhile, Aditya Birla Finance has filed an arbitration appeal before the Supreme Court against Essel group's Siti Networks Ltd, Zee Entertainment and Essel Corporate LLP, pleading an enforcement of a letter of comfort (LOC) alleged to have been given by Zee in relation to term loans granted to the Essel group firms. The adjudication proceedings are pending, and Zee is facing a contingent liability of ₹174.57 crore in the matter. "The chances of liability against ZEEL are very remote," said Zee.

In terms of tax-related disputes, Zee Entertainment, for the assessment years 2017-18 through 2021, faces a liability of ₹127.8 crore in relation to a suit filed by the director general of GST Intelligence (DGGi) Mumbai over an alleged wrongful availment of GST tax credit.

"The company will take necessary legal recourse under the available law," said the filing.

"The company has taken on record as a part of its contingent liability enhancing the demand shown in SCN (show- cause notice) as at 30 June 2023 to ₹127.8 crore in order to reflect consequential interest and penalty," said Zee Entertainment.

In another case related to Zee Entertainment's merger plan with INX Media Pvt. Ltd in FY11, filed by the department of direct taxes before the Bombay high court, as of 30 June, Zee Entertainment is carrying a contingent liability of ₹66.4 crore, said Zee.

"…in the assessment proceeding of INX Media, the assistant commissioner of Income Tax had made certain disallowance due to which the losses of INX Media were reduced. Accordingly, losses claimed by the company had been reduced," said the filing.

In a case filed by the department of indirect taxes against Zee, the company said it faces a contingent liability of ₹46.2 crore as of 30 June.

Separately, in the Supreme Court, an erstwhile subsidiary of Zee, Taj Television (India) Pvt. Ltd, has filed a case against Citizen Consumer Forum, the government of India and Prasar Bharati, claiming a compensation of ₹755 crore from Prasar Bharati, arising from the simultaneous telecast of Pakistan-India Cricket series played from 12 March to 17 April in 2004 in Pakistan.

₹50 crore was deposited by Prasar Bharati after a Supreme Court directive. But, Prasar Bharati had also filed a counter claim of ₹572 crore. The matter is pending adjudication, and Zee said it has a strong case on merits. The disclosures were made by the company in accordance with a new Sebi disclosure rule.