Siti Networks defaults on term loan instalments, outstanding claims total Rs 1,206 crore

MUMBAI: Siti Networks has disclosed a default on term loan instalments, with the company saying the default began on July 31, 2026 and has continued beyond 30 days.

In a regulatory filing dated August 31, the cable television operator said the lenders involved include Axis Bank, Asset Reconstruction Company India Limited (ARCIL), Aditya Birla Finance, IDBI Bank, IndusInd Bank, RBL Bank, IndusInd Bank, Vani Agencies and Indian Cable Net Company Limited.

The company disclosed financial creditor claims totalling Rs 1,206.03 crore, based on claims received as of August 10, 2023. The total claims submitted as of February 22, 2023 stood at Rs 1,500 crore, according to the filing.

Axis Bank has a claim of Rs 240.85 crore based on the August 10, 2023 figures, while ARCIL’s claim stands at Rs 364.77 crore. Aditya Birla Finance has claimed Rs 177.94 crore and IDBI Bank Rs 169.66 crore.

IndusInd Bank’s claim is Rs 45.32 crore, followed by RBL Bank at Rs 54.33 crore, Vani Agencies at Rs 148 crore and Indian Cable Net Company at Rs 5.16 crore.

The disclosure comes against the backdrop of Siti Networks’ prolonged insolvency proceedings. The Mumbai bench of the National Company Law Tribunal admitted the company into the corporate insolvency resolution process (CIRP) on February 22, 2023, following a petition under Section 7 of the Insolvency and Bankruptcy Code.

The admission order was subsequently challenged before the National Company Law Appellate Tribunal (NCLAT). Although the appellate tribunal initially stayed the operation of the admission order, it dismissed the appeal in August 2023, resulting in the reinstatement of the CIRP.

With the insolvency process back in force, the powers of Siti Networks’ board of directors were suspended and vested with the resolution professional, in accordance with the IBC.

The insolvency proceedings have since been complicated by disputes over transactions and amounts appropriated by lenders during the period when the CIRP was stayed.

In October 2024, the NCLT held that the insolvency commencement date remained February 22, 2023 and that the CIRP-related activities should be reckoned from that date. It also held that the IBC moratorium applied during the stay period and directed that certain transactions and appropriations made during that period be reversed.

The NCLAT subsequently dismissed appeals against the October 2024 order in July 2025 and directed financial creditors to return the relevant amounts to Siti Networks with accrued interest.

Some financial creditors have challenged that judgment before the Supreme Court. According to Siti Networks’ latest filing, the Supreme Court has stayed the direction requiring those creditors to remit amounts received during the CIRP stay period. The apex court has also directed that no payments be made to operational creditors for liabilities relating to the stay period.

The latest filing also highlights a recent development involving Vani Agencies. A financial creditor claim originally belonging to Zee Entertainment Enterprises was assigned to Vani Agencies in July 2024. The resolution professional subsequently admitted Vani Agencies’ claim as financial debt.

Vani Agencies had challenged its classification as a related party and sought inclusion in Siti Networks’ Committee of Creditors. The Mumbai NCLT allowed the application on August 27, 2026.

Siti Networks said the latest disclosure is based on claims received from financial creditors as of August 10, 2023 and February 22, 2023. Any changes resulting from the pending Supreme Court proceedings will be incorporated into future regulatory filings.

The disclosure adds another chapter to Siti Networks’ long-running insolvency saga, with the latest loan default underscoring the financial pressure still facing the company as its resolution process continues.