Ram Gopal Varma gets legal notice over 16-year-old agreement, production house seeks Rs 29.67 crore: Report

Filmmaker Ram Gopal Varma is facing a financial dispute with production house Eclatant Films Private Limited, which has reportedly demanded Rs 29.67 crore from him over a contractual agreement dating back to 2010.

The matter has escalated with the company issuing a warning to stakeholders against acquiring or exploiting projects associated with the director without its prior approval.

As per The Indian Express, Eclatant Films sent the recovery notice on October 15, asking Varma to clear the outstanding amount by October 30. The demand reportedly includes the principal dues along with Rs 11.38 crore in accumulated interest.

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RGV has not issued a public response to the notice so far.

What's the matter?

The disagreement reportedly comes from an agreement entered into by Varma and Eclatant Films on April 10, 2010. The arrangement was subsequently upheld by the Bombay High Court on April 17, 2013, as per The Indian Express.

As per the production house's claims, the agreement required Varma to secure a written No Objection Certificate (NOC) from the company before undertaking certain film-related assignments. The requirement reportedly covered projects in which he was associated as a producer, co-producer, director or writer.

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Eclatant Films alleges that the filmmaker failed to comply with these contractual obligations. It has consequently sought recovery of Rs 29.67 crore, including the accumulated interest on the outstanding amount.

Additionally, it has cautioned producers, distributors, broadcasters and streaming platforms against entering into transactions involving the filmmaker or projects connected to him without first obtaining written permission.

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The warning was published in the October 24 and October 31 editions of trade publication Complete Cinema.

According to The Indian Express, Eclatant Films has also indicated that it could invoke its contractual lien if the filmmaker does not settle the outstanding dues. This could involve asserting claims over his shares, rights, financial interests and revenues generated through the exploitation of films covered by the 2010 agreement.

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However, further details about the matter are still not publicly revealed.

On the work front, Varma is currently working on Police Company, a crime drama featuring Harshvardhan Rane in the lead role. The film is set for a theatrical release on June 4, 2027. Its cast also includes Fardeen Khan, Fatima Sana Shaikh, Paresh Rawal, Saurabh Shukla, Makarand Deshpande and Ashwini Kalsekar.

He is also working on Police Station Mein Bhoot, which stars Manoj Bajpayee.