Siti Networks sacks 410 employees as insolvency turmoil impacts operations

Siti Networks Limited has laid off around 410 employees as the troubled cable TV and broadband company grapples with mounting financial stress, operational turbulence and prolonged insolvency proceedings. The move, confirmed by a senior company source, has effectively brought most operational functions to a standstill.

The layoffs come at a time when the Essel Group company is already struggling to stay afloat under the Corporate Insolvency Resolution Process (CIRP). Siti Networks has been facing severe liquidity constraints, sustained operational losses and complex legal disputes that have stalled the resolution timeline.

Mounting losses and weakening financials

For the June quarter, Siti Networks reported a standalone net loss of ₹437.64 million, an improvement from the ₹530.17 million loss recorded in Q4, but still indicative of the company’s fragile financial health. Revenue from operations slipped marginally to ₹799.55 million.

The company’s balance sheet remains heavily stressed, with a negative net worth of ₹13,380.37 million and negative working capital of ₹17,278.93 million. Its auditors have issued a disclaimer of opinion — one of the strongest red flags in corporate financial reporting — citing significant uncertainties related to ongoing insolvency proceedings, multiple litigations and the company’s ability to continue as a going concern.

Despite these concerns, the management has prepared financial statements on a going concern basis, assuming that the resolution process will eventually lead to business revival — an outcome that now appears increasingly challenging amid operational shutdowns and large-scale workforce reductions.

Adding to its woes, Siti Networks has reported a default on repayment of term-loan instalments and interest to multiple lenders for over 30 days as of October 31, 2025. Under SEBI regulations, the company was required to make a mandatory disclosure of the default.

Lenders listed in the regulatory filing include ARCIL, IDBI Bank, RBL Bank, Axis Bank, Aditya Birla Finance Ltd (ABFL), IndusInd Bank, Vani Agencies Pvt. Ltd., and Indian Cable Net Company Ltd. Verified creditor claims have risen to ₹1,500 crore as of August 10, 2023, up from ₹1,206 crore earlier, indicating a deepening financial hole.

A long and complex insolvency battle

Siti Networks’ CIRP journey has been marked by legal challenges and back-and-forth directives. The insolvency process was first admitted by the National Company Law Tribunal (NCLT) on February 22, 2023. However, an appeal by a company director temporarily stayed proceedings. In August 2023, the National Company Law Appellate Tribunal (NCLAT) dismissed the appeal, reinstating the insolvency timeline.

In the months that followed, the NCLT and NCLAT issued multiple orders directing lenders to reverse transactions carried out during the stay period and deposit appropriated amounts with interest. Several financial creditors challenged these orders in the Supreme Court, which then stayed the NCLAT directive and barred payments to operational creditors pertaining to the disputed period.

Siti Networks stated that its latest disclosures are based on claims filed as of the February and August 2023 reference dates, and that it will revise the numbers once the Supreme Court delivers a final ruling on the pending appeals.

With large-scale layoffs, halted operations, unresolved litigation and a widening financial deficit, Siti Networks' turnaround prospects appear increasingly uncertain. When contacted, CEO Yogesh Sharma declined to comment, citing the ongoing insolvency proceedings.

Industry executives say the layoffs reflect the severity of the situation and the limited runway available to the company as it awaits clarity from the courts and creditors. For now, Siti Networks — once one of India’s largest multi-system operators — finds itself in the middle of one of the most prolonged and complex insolvency battles in the media distribution space.