Delhi High Court Orders Jail Term for Reliance Entertainment Officials in T-Series Contempt Case

The Delhi High Court in Super Cassettes Industries Private Limited v Reliance Entertainment Studios Private Limited has held Reliance Entertainment Studios and its officials guilty of contempt of court for failing to comply with earlier judicial directions in a financial dispute involving music label T-Series.

Justice Manmeet Pritam Singh Arora ruled that the company had wilfully disobeyed court orders requiring the deposit of specific payments owed to Super Cassettes Industries, the company behind the T-Series brand. The Court found the non-compliance serious enough to warrant a custodial sentence.

The High Court directed three representatives of Reliance Entertainment to undergo four weeks of simple imprisonment if the company fails to clear the outstanding dues within a stipulated period. However, the Court granted a brief opportunity for compliance before the sentence takes effect.

“To enable the aforesaid opportunity, the prison sentence shall remain suspended for two [2] weeks. However, to secure the appearance of Respondent Nos. 1 to 3, they are directed to appear before the Joint Registrar (J) on 16.03.2026 for furnishing bails bonds in the sum of ₹1 lakh with one surety of the same amount. If the payment as directed above is deposited within two [2] weeks, the prison sentence shall be remitted and the bail bonds will be discharged,” the Court said.

The dispute stems from a 2021 loan agreement under which T-Series had extended a loan of ₹168 crore to Reliance Entertainment to partly finance six films. The agreement also provided for interest at 12.5 percent and a share of revenues generated from the projects.

Subsequently, T-Series approached the High Court seeking recovery of nearly ₹60 crore, alleging that Reliance Entertainment had defaulted on repayment obligations. During earlier proceedings in November and December 2023, the Court directed the company to disclose receivables and deposit certain admitted amounts.

Among the sums involved were ₹7.42 crore expected from Zee Entertainment Enterprises Ltd and ₹2.32 crore linked to revenues generated from films including IB-71 and Bholaa. These payments were to be deposited within the timelines fixed by the Court.

While Reliance eventually paid the ₹2.32 crore in May 2025, the Court observed that the payment was significantly delayed. Justice Arora noted that such delay amounted to wilful disobedience of judicial directions and could not be treated as a mere procedural lapse.

The Court also recorded that only ₹4.29 crore of the ₹7.42 crore receivable from Zee Entertainment had been received, leaving a shortfall of ₹3.13 crore. Reliance Entertainment was therefore directed to deposit the remaining amount along with applicable interest.

The High Court clarified that if the outstanding dues are cleared within two weeks, the sentence will stand remitted. However, failure to comply with the order will result in the three company officials serving the four-week prison term imposed by the Court.