Siti Networks Limited , a player in the Indian cable TV and broadband services sector, has disclosed defaults on term loan instalments to multiple lenders in its latest SEBI compliance filing dated December 31, 2025. The company reported total outstanding claims of ₹1,500 crores as it continues to navigate through Corporate Insolvency Resolution Process (CIRP).

Default Disclosure Details

In compliance with SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/2019/140, Siti Networks reported defaults on term loan instalments with a default date of November 30, 2025. The defaults continue beyond the 30-day threshold, triggering mandatory disclosure requirements.

Lender-wise Outstanding Claims

The company's financial obligations are distributed across multiple lenders, with claims varying significantly between the initial CIRP filing and subsequent assessments:

Ongoing Insolvency Proceedings

The Corporate Insolvency Resolution Process was initiated by the National Company Law Tribunal (NCLT) Mumbai Bench on February 22, 2023, with Mr. Rohit Mehra appointed as the Interim Resolution Professional. The process has been marked by extensive legal challenges and appeals.

Key Legal Developments

• NCLAT Appeal: Ms. Shilpi Asthana, director of Siti Networks, filed an appeal against the admission order, which was initially stayed but later dismissed on August 10, 2023
• Supreme Court Proceedings: Multiple appeals are currently pending before the Supreme Court regarding financial creditor claims and payment obligations
• Stay Orders: The Supreme Court has granted stay to financial creditors from remitting amounts received during the CIRP stay period

Related Party Transactions

A significant development involves Zee Entertainment Enterprise Limited (ZEEL), whose financial creditor claim has been assigned to Vani Agencies Private Limited (VAPL) on July 2, 2024. The Resolution Professional has admitted VAPL's claim as financial debt and classified it as a related party transaction under the Insolvency and Bankruptcy Code, 2016.

Current Status and Implications

The substantial outstanding claims and ongoing legal complexities continue to pose significant challenges for Siti Networks. The company's operational capabilities remain under stress as multiple stakeholders await resolution of the insolvency proceedings. The Supreme Court's directions regarding payment restrictions to operational creditors during the CIRP stay period add another layer of complexity to the resolution process.

In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by several major banks against Siti Networks Limited , ordering them to return ₹143.15 crore withdrawn from the company's accounts during a stay period on insolvency proceedings.

Key Highlights

• NCLAT dismissed appeals by Axis Bank, Aditya Birla Capital, IDBI Bank, IndusInd Bank, and RBL Bank
• Banks ordered to refund ₹143.15 crore withdrawn during the stay period between March and August 2023
• NCLAT ruled that moratorium remained in effect despite the stay order on insolvency proceedings
• Tribunal applied the principle of restitution, stating benefits from interim orders must be restored when appeals are dismissed

Details of the Ruling

The NCLAT's judgment comes as a setback to the banks, who had argued that they had contractual rights to withdraw funds from Siti Networks' accounts. However, the tribunal emphasized that insolvency proceedings are 'in rem' and continue even during stay periods.

The case revolves around the withdrawal of ₹143.15 crore by the banks from Siti Networks' account during a period when the company's insolvency proceedings were temporarily halted between March and August 2023. The NCLAT ruled that despite the stay order, the moratorium on creditor actions remained in effect.

Breakdown of Withdrawals

The tribunal provided a detailed breakdown of the withdrawals made by various banks:

Implications of the Judgment

The NCLAT's decision underscores the importance of respecting the moratorium period during insolvency proceedings, even when there is a stay order in place. This ruling sets a precedent that could impact how financial institutions handle accounts of companies undergoing insolvency resolution.

The tribunal's application of the principle of restitution means that parties who benefit from interim orders must restore those benefits when appeals are ultimately dismissed. This ensures that the insolvency process remains fair and that no party gains an undue advantage during legal proceedings.

Resolution Professional's Role

The NCLAT also criticized the Resolution Professional for improperly handing over management to suspended directors during the stay period. This highlights the need for clarity in roles and responsibilities during complex insolvency proceedings.

As per the NCLAT's order, the banks are now required to return the withdrawn amounts to Siti Networks' corporate debtor account with accrued interest. This decision aims to restore the financial position of Siti Networks to what it would have been without the disputed withdrawals.

The case underscores the complexities of insolvency proceedings and the importance of adhering to legal procedures, even during periods of legal uncertainty. It serves as a reminder to all stakeholders in insolvency cases to act with caution and in accordance with the spirit of the Insolvency and Bankruptcy Code.