Zee Entertainment faces potentially crippling damage claims from Star India, stock down over 8 per cent in five days. The company says will strongly contest all “unfounded claims by Star and reserves all its rights.

Disney India (previously Disney Star) is seeking $940 million of damages from Indian media conglomerate Zee Entertainment Enterprises Limited, it was revealed on Wednesday. The claim relates to a cricket rights deal that collapsed in January this year.

The Indian unit of Walt Disney Co. has sought $940 million in damages from Zee Entertainment Enterprises Ltd., stretching out a legal battle with the Mumbai-based broadcaster after it defaulted on payment for TV rights of cricket matches.

The dispute centers on Zee's failure to meet payment deadlines for a $1.4 billion deal with Disney Star, which grants Zee exclusive TV rights to ICC men’s cricket matches.

Disney -owned Star India has sought $940 million from Zee Entertainment in damages in a London court for the termination of a cricket broadcasting agreement, the Indian broadcaster said on Wednesday.

Star India has filed a Statement of Case against Zee Entertainment, seeking $940 million in damages over a terminated ICC TV rights deal. Zee denies the allegations and plans to contest the claims. The arbitration is still in its early stages,