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.

Siti Networks Limited has formally explained to the BSE the reasons behind the delay in submitting its financial results for the second quarter of financial year 2025-26, ended September 30, 2025. The company's response, dated December 11, 2025, addresses BSE's inquiry regarding the non-disclosure of reasons for the delayed submission.

Corporate Insolvency Resolution Process Impact

The primary factor affecting the company's financial reporting timeline is the ongoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated by the National Company Law Tribunal, Mumbai Bench through its order dated February 22, 2023, later confirmed by the National Company Law Appellate Tribunal on August 10, 2023.

Upon admission into CIRP, the powers of the Board of Directors stand suspended, with management responsibilities transferred to the Resolution Professional. This fundamental change in corporate governance has significantly impacted the company's operational processes, including financial reporting mechanisms.

Operational Challenges and Resource Constraints

The CIRP process has created substantial operational challenges that directly affect financial statement preparation. The resolution process involves meticulous procedures including transaction audits, valuations, claim verifications, and comprehensive legal and financial assessments. These activities have absorbed considerable time and focus from the finance department, creating resource allocation challenges.

A critical development has been the resignation of several key personnel from the finance and audit teams responsible for preparing financial statements. These departures have created knowledge gaps and workflow disruptions, contributing significantly to the delay in completing the required financial documentation.

Subsidiary Company Complications

Siti Networks Limited operates with 23 subsidiary companies, adding complexity to its consolidated financial statement preparation. One subsidiary, Siti Broadband Services Private Limited, is currently undergoing its own CIRP process, creating additional complications for the parent company's reporting requirements.

The company faces delays in receiving financial statements from several subsidiary companies, which are essential for preparing consolidated financial statements. This interdependency has created a cascading effect on the overall timeline for financial reporting completion.

Timeline and Compliance Commitment

Despite these challenges, Siti Networks Limited has provided a clear timeline for resolution. The company anticipates submitting the second quarter financial results by January 31, 2026. This extended timeline allows for comprehensive review and ensures accurate representation of the company's financial status while maintaining compliance with regulatory requirements.

The company has emphasized its commitment to meeting regulatory obligations under SEBI Listing Regulations and has assured stakeholders of continued updates on progress. The management acknowledges the complexity involved in aligning financial statements with ongoing CIRP proceedings while ensuring accuracy and transparency in reporting.

Siti Networks Limited's situation highlights the significant operational and reporting challenges faced by companies undergoing insolvency resolution processes, where maintaining regulatory compliance becomes increasingly complex amid restructuring activities and resource constraints.