Zee Entertainment Enterprises Ltd (ZEEL) today said it initiated legal proceedings against RailTel Corporation of India terminating the agreement with its subsidiary for providing media content in trains.
Zee Entertainment shares fell 0.72% to settle at ₹311.80 apiece on NSE.
Margo Networks, a subsidiary of ZEE, had entered into a content-on-demand (COD) contract with RailTel Corporation of India for providing media content in all express and suburban trains and all Wi-Fi-enabled railway stations.
The contract, which was on a build-own-operate basis for 10 years, was terminated by RailTel Corporation of India on Thursday (November 11), ZEEL said in a regulatory filing.
“The company has initiated appropriate legal proceedings against the notice of termination,” said ZEEL.
RailTel Corporation is a public sector undertaking and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optical fibre network on the exclusive right of way (ROW) along the railway track.
ZEE Entertainment’s consolidated net profit more than doubled to ₹270 crore in the September quarter, while revenue rose 15% to ₹1,978 crore.
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