SITI Networks Limited has reported a substantial default on loan payments totaling ₹1,206.03 crore to multiple lenders as of February 28, 2026. The company disclosed this information to stock exchanges on March 31, 2026, in compliance with SEBI Circular dated November 21, 2019, regarding disclosure of defaults on payment of interest and principal amounts.

Default Details and Lender Breakdown

The company has defaulted on term loan installments to eight financial institutions, with the default date recorded as February 28, 2026, continuing beyond the 30-day threshold. The disclosure reveals significant exposure across multiple lenders:

Corporate Insolvency Resolution Process Status

SITI Networks has been undergoing Corporate Insolvency Resolution Process (CIRP) since February 22, 2023, when the National Company Law Tribunal (NCLT) Mumbai Bench initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Rohit Mehra was appointed as the Interim Resolution Professional, with the company's Board of Directors' powers currently suspended under Section 17 of the IBC.

The insolvency process faced legal challenges when Ms. Shilpi Asthana, a director of SITI Networks, filed an appeal before the National Company Law Appellate Tribunal (NCLAT), which initially stayed the proceedings. However, the NCLAT dismissed the appeal on August 10, 2023, reinstating the CIRP with the insolvency commencement date fixed at February 22, 2023.

Recent Legal Developments

Significant legal proceedings have shaped the company's current status. On October 1, 2024, the NCLT passed an order establishing key provisions:

• Insolvency commencement date confirmed as February 22, 2023
• CIRP activities to be reckoned from February 22, 2023
• Moratorium under Section 14 applicable during the stay period
• Transactions during stay period to revert to corporate debtor accounts
• Protection for expenses incurred in ordinary business course

The NCLAT subsequently directed lenders on October 29, 2024, to maintain appropriated amounts in separate interest-bearing accounts during appeal proceedings. On July 31, 2025, the NCLAT dismissed all appeals and directed financial creditors to remit amounts back to the corporate debtor with accrued interest.

Supreme Court Proceedings

Certain financial creditors have escalated the matter to the Supreme Court, challenging the NCLAT judgment dated July 31, 2025. The Supreme Court has currently granted a stay preventing financial creditors from remitting amounts received during the CIRP stay period and has directed that no payments be made to operational creditors for liabilities relating to the stay period.

Financial Creditor Claims Transfer

A notable development involves the transfer of Zee Entertainment Enterprise Limited (ZEEL) financial creditor claim to Vani Agencies Private Limited (VAPL) on July 2, 2024. The Resolution Professional admitted VAPL's claim as financial debt after verification, classifying VAPL as a related party under section 5(24) of the Insolvency and Bankruptcy Code, 2016, similar to ZEEL's previous classification.

The company indicated that further changes or additions may be incorporated in subsequent filings based on the outcome of ongoing Supreme Court appeals, reflecting the dynamic nature of the insolvency proceedings and creditor claims resolution process.

Siti Networks Limited has disclosed a substantial default on loan payments totaling ₹1,206.03 crore across eight financial institutions, as reported in its regulatory filing dated March 2, 2026. The disclosure was made in compliance with SEBI Circular requirements regarding defaults on payment of interest and principal amounts on loans from banks.

Default Details and Affected Lenders

The company reported defaults on term loan installments with a default date of January 31, 2026, continuing beyond the 30-day threshold. The default affects multiple prominent financial institutions and asset reconstruction companies.

Corporate Insolvency Resolution Process Status

SITI Networks has been under Corporate Insolvency Resolution Process (CIRP) since February 22, 2023, following an order by the National Company Law Tribunal (NCLT) Mumbai Bench. The NCLT appointed Mr. Rohit Mehra as the Interim Resolution Professional, with the powers of the Board of Directors currently suspended and vested in the IRP under Section 17 of the Insolvency and Bankruptcy Code.

The company faced legal challenges when Ms. Shilpi Asthana, director of SITI Networks, filed an appeal before the National Company Law Appellate Tribunal (NCLAT) against the admission order. However, the NCLAT dismissed the appeal on August 10, 2023, upholding the original CIRP initiation.

Recent Legal Developments

Significant legal proceedings have shaped the company's current situation:

NCLT Order of October 1, 2024

The NCLT passed a comprehensive order establishing key parameters for the insolvency process:

• Fixed insolvency commencement date as February 22, 2023
• Confirmed CIRP activities should be reckoned from February 22, 2023
• Applied moratorium under Section 14 during the stay period
• Directed reversal of transactions undertaken during the stay period
• Protected expenses incurred in ordinary business course

NCLAT Judgment of July 31, 2025

The NCLAT delivered a significant judgment dismissing multiple appeals filed by lenders and directing financial creditors to remit appropriated amounts back to the corporate debtor along with accrued interest.

Supreme Court Appeals

Certain financial creditors have preferred appeals before the Supreme Court against the NCLAT judgment dated July 31, 2025. The Supreme Court has currently granted a stay to financial creditors from remitting amounts received during the CIRP stay period and directed that no payments shall be made to operational creditors for liabilities relating to the stay period.

Financial Creditor Claims Assignment

A notable development involves the assignment of Zee Entertainment Enterprise Limited's (ZEEL) financial creditor claim to Vani Agencies Private Limited (VAPL) on July 2, 2024. The Resolution Professional admitted VAPL's claim as financial debt after verification, classifying VAPL as a related party under Section 5(24) of the Insolvency and Bankruptcy Code, 2016.

Regulatory Compliance

The disclosure was filed by Company Secretary and Compliance Officer Suresh Kumar (Membership No. ACS 14390) in accordance with Para 3(C1) of SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/2019/140 dated November 21, 2019. The company noted that any further changes or additions pursuant to the outcome of Supreme Court appeals will be incorporated in subsequent filings.