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Chiyaan Vikram's upcoming film 'Tangalan' and Surya's upcoming film 'Kanguva' are embroiled in a legal case. The Madras High Court has directed the producer of both the films, KE Gnanavel Raja's studio Green Production Company, to deposit Rs 1 crore each by Wednesday (August 14).
The court has ordered that both the films cannot be released until this amount is deposited. While 'Tangalan' is to be released in theatres on 15th August, 'Kanguva' will be released on 10th October. Both these are big budget Tamil films.
Vikram starrer 'Tangallan' is scheduled to release in theatres on August 15.
Big trouble for the makers of 'Tanglan'
This decision was given by a bench of Justice G. Jayachandran and Justice CV Karthikeyan. The court ordered that 'Tangallan' is going to be released across the country on Thursday (August 15). In such a situation, this amount should be deposited on August 14 itself. The judges also ordered that one crore rupees more should be deposited before the release of 'Kangua'.
Surya starrer 'Kanguva' will be released on October 10 this year.
Learn about the case in detail
This order has been given on a petition filed by the official assignee of the High Court. The person appointed by the court was entrusted with the task of recovering the outstanding loan from bankrupt businessman Arjunlal Sundardas (who has now passed away).
Sundardas was accused of defrauding people of crores of rupees by luring them to invest in his finance and real estate companies.
Sunderdas collaborated with Studio Green
Sundardas had decided to co-produce a film with Studio Green in 2011 by investing Rs 40 crore. Sundardas paid Rs 12.85 crore to the production house on different dates between September 2011 and October 2012, but backed out midway due to lack of funds.
Producer KE Gnanavel Raja's studio Green Production Company has invested in both these films.
The production house had to pay Rs 10.35 crores including interest
In the case, the production house expressed its inability to pay the full amount and said that the money was spent during pre-production work. The bankrupt company got back only Rs 2.5 crore, leaving an amount of Rs 10.35 crore remaining.
The official appointee urged the court to direct the production house to deposit Rs 10.35 crore with 18 per cent interest from December 2013 so that the money deposited with the deceased Sunderdas can be refunded.
Until the money is deposited, the release of every film will be stopped
Earlier, while hearing the petition, the court ordered to deposit Rs 10.35 crore with 18 percent interest from the year 2013. But after 2019 this order was not followed.
The Official Assignee has filed a petition to seize all future films of Studio Green (including 'Tanghalan' and 'Kanguwa') until it complies with the five-year-old court order.
