Director Ram Gopal Varma has been served with a Rs 29.67 crore recovery notice by production house Eclatant Films Private Limited. The production house has also warned people against working with the Satya director without obtaining its prior written clearance.
The dispute stems back to a 2010 agreement. Eclatant Films published a notice regarding the matter in the October 24 and October 31 editions of trade publication Complete Cinema.
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The notice had asked Varma to pay the full amount by October 30, including Rs 11.38 crore in accumulated interest.
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This is not the first time Ram Gopal Varma has faced financial claims from production partners. The Federation of Western India Cine Employees (FWICE) tried to stop the release of his movie D Company in 2021 over unpaid dues of Rs 12 crore.
Ram Gopal Varma Gets Notice
Eclatant Films sent a legal notice to Ram Gopal Varma on October 15, as per The Indian Express asking him to settle total outstanding dues of Rs 29.67 crore. The company has also referenced an order passed by the Bombay High Court in connection with the agreement in 2013. The specific details of the court order were disclosed in the public notice.
The 2010 agreement asked Ram Gopal Varma to secure such a No Objection Certificate (NOC) before undertaking activities related to film production, co-production, direction or writing associating with any third party till the outstanding dues are fully settled.
Eclatant Films has warned all entities or individuals against entering into transactions involving Ram Gopal Varma or his projects without first obtaining a written No-Objection Certificate (NOC) from them.
The company said that those who use the rights linked to projects falling within the scope of the agreement would be doing so at their own risk if they do not get the required clearance.
What Happens Next?
Eclatant Films has claimed that if Ram Gopal Varma fails to pay the amount, the production house will assert its contractual lien over his share, revenues, interests and exploitation rights in the films and projects that are part of the 2010 agreement.
If enforced, the contractual lien would give Eclatant Films a claim over the earnings and rights of those projects before any new business partners Ram Gopal Varma could bring in.
As of now, Ram Gopal Varma has not commented on the matter.
He is shooting for Police Company, starring Harshvardhan Rane.
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