Another legal storm brewing for Vashu Bhagnani
Just when Vashu Bhagnani thought the heat was cooling down, fresh trouble has come knocking. The veteran producer, already in a legal tussle over the alleged unauthorised use of songs from Biwi No. 1, is now staring at another major flashpoint. This time, it involves PVR Inox Ltd, the biggest player in the exhibition and distribution game.
Industry insiders tell Cinecrazy that PVR Inox Pictures — the distribution arm of the multiplex giant — is seriously mulling legal proceedings against Bhagnani’s banner, Puja Entertainment. The bone of contention? A whopping Rs 100 crore three-film deal that went south big time.
What exactly happened with the three-film deal?
Sources reveal that PVR Inox Pictures had entered into a three-film arrangement with Puja Entertainment, paying around Rs 100 crore as a refundable advance. The deal covered three big-ticket releases: Mission Raniganj, Ganapath, and Bade Miyan Chote Miyan. The understanding was simple — if the films failed to perform at the box office, Bhagnani’s company would refund the outstanding amount.
But alas, all three films tanked, collectively earning around Rs 100 crore at the India box office. That’s barely enough to cover the advance, let alone make any profit. Following this, PVR Inox Pictures reportedly made repeated follow-ups for recovery. As per trade sources, the alleged outstanding amount is believed to be in the range of Rs 50 crore, though this figure could not be independently verified. Despite several reminders, the recovery efforts apparently didn’t yield any positive result.
Now, PVR Inox Pictures is believed to be seriously considering initiating legal proceedings. A source close to the development says, “The matter has not yet reached court, but given that the follow-ups have not led to any meaningful recovery, PVR Inox Pictures is likely to take the legal route if a settlement is not reached soon.”
Flat offer and interest complications
What makes this drama even more interesting is the alleged settlement proposal that was explored. According to insiders, the Bhagnanis offered around two to three flats in Mumbai in lieu of the alleged dues. However, that proposal hasn’t resolved the issue. Why? Because the value of the flats, even if considered, is believed to fall short of the total claim — especially once the interest due over the principal amount is taken into account.
A source explains, “The issue is no longer only about the principal amount. The interest component has also become significant. Hence, even a property-based settlement may not fully cover the alleged dues unless both sides arrive at a revised understanding.”
All this comes at a time when Vashu Bhagnani and Puja Entertainment are already under the spotlight over the song rights controversy. With one legal battle already making noise and another possible recovery dispute brewing, the coming weeks could prove crucial for the producer and his banner. While no court proceedings have been initiated yet in this matter, the buzz in trade circles is palpable. Keep watching this space — this Bollywood financial drama is far from over.