Filmmaker Ram Gopal Varma is facing a demand for ₹29.67 crore from production house Eclatant Films Private Limited over an agreement signed in 2010. The dispute has widened beyond the filmmaker, with the company issuing a warning to producers, distributors, broadcasters and streaming platforms against entering into business arrangements involving him or acquiring rights to projects associated with him without its written clearance.
Eclatant Films issued a legal notice to Varma on October 15, asking him to settle the outstanding amount by October 30. The demand, reported to total ₹29,67,64,000, includes ₹11.38 crore in accumulated interest. The production house subsequently published a public notice in the October 24 and October 31 editions of trade publication Complete Cinema, alerting the wider film industry.
Varma has not publicly responded to the claims.
Dispute centres on 2010 agreement
The disagreement stems from an agreement signed between Varma and Eclatant Films on April 10, 2010. The production house has also referred to an order passed by the Bombay High Court on April 17, 2013, in connection with the agreement. However, the specific details of the court order have not been disclosed in the public notice.
According to Eclatant Films, the contract requires Varma to obtain its prior written No Objection Certificate (NOC) before undertaking certain film-related activities. These include working as a producer, co-producer, director or writer on projects covered by the agreement, as well as entering into arrangements with third parties.
The company alleges that the filmmaker did not comply with these contractual conditions and is seeking recovery of the outstanding dues.
Producers and OTT platforms put on notice
The production house's warning extends to anyone seeking to acquire, license, distribute, broadcast, stream or otherwise commercially exploit rights connected with projects covered by the agreement.
Eclatant Films has cautioned producers, distributors, broadcasters and OTT platforms against entering into such transactions without first obtaining its written NOC. It has warned that parties proceeding without the required clearance would do so at their own risk.
The company has also indicated that it may invoke its contractual lien if Varma fails to clear the dues. This would involve asserting claims over his shares, rights, interests, revenues and exploitation rights in films and projects falling within the scope of the 2010 agreement.
The notice also refers to possible legal remedies, including injunctions, recovery proceedings and enforcement of contractual security rights. However, the precise range of films covered by the agreement and the extent to which it could affect Varma's subsequent projects have not been publicly established.
Police Company among Varma's upcoming projects
The dispute comes as Varma is working on his next directorial, Police Company, a crime drama starring Harshvardhan Rane. The film is scheduled for a theatrical release on June 4, 2027.
Based on true events and real-life characters, the film explores the circumstances behind the killing of around 300 gangsters. Its ensemble cast includes Fardeen Khan, Fatima Sana Shaikh, Paresh Rawal, Saurabh Shukla, Makarand Deshpande and Ashwini Kalsekar.
Bhushan Kumar, Krishan Kumar and Varma have produced the project, which is presented by Gulshan Kumar and T-Series. It remains unclear whether Police Company falls within the scope of the agreement with Eclatant Films or whether the notice will affect its production or distribution.
Varma is also associated with Police Station Mein Bhoot, featuring Manoj Bajpayee. The project will mark the pair's first collaboration since Sarkar 3.
Earlier financial dispute involving D Company
This is not the first time Varma has faced a financial dispute involving film-related dues. In 2021, the Federation of Western India Cine Employees (FWICE) sought to halt the release of his film D Company over alleged unpaid dues of ₹12 crore.
The latest demand from Eclatant Films is substantially higher, with the accumulated interest alone reportedly amounting to ₹11.38 crore. The outcome of the dispute and any subsequent action by the production house could have implications for the filmmaker's dealings with other industry stakeholders.