PVR Inox reportedly considering legal action against Vashu Bhagnani
What's the story
Veteran Bollywood producer Vashu Bhagnani is facing a legal challenge from PVR Inox Pictures. The company is said to be considering legal action over an alleged refundable advance of ₹100cr from a three-film deal with Puja Entertainment, reported Bollywood Hungama. This development comes on the heels of Bhagnani's recent lawsuit against the makers of Hai Jawaani Toh Ishq Hona Hai for allegedly using songs from Biwi No 1 without his permission.
Legal dispute
Details of the alleged 3-film deal with PVR Inox
An insider revealed, "PVR Inox Ltd...had entered into a three-film arrangement with Vashu Bhagnani's production house, Puja Entertainment." "As part of the understanding, PVR Inox Pictures had reportedly paid around ₹100 crores as a refundable advance to Puja Entertainment." The films under this deal were Mission Raniganj, Ganapath, and Bade Miyan Chote Miyan. "The understanding was that if the films failed to generate the expected results, Puja Entertainment would refund the outstanding balance."
Expectations
'All three films failed to meet box office expectations'
The source added, "However, all three films failed to meet box office expectations, folding around ₹100 cr. at the India box office." "Following this, PVR Inox Pictures is said to have made repeated follow-ups for recovery of the alleged outstanding amount." "As per unofficial industry sources, the amount due is believed to be in the range of around ₹50 crores." "Despite repeated follow-ups, the recovery efforts apparently did not yield any positive or impactful result."
Potential lawsuit
Legal action likely if settlement not reached soon
PVR Inox Pictures is reportedly considering legal action to recover the alleged unpaid amount. "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," added the source.
Settlement offer
Bhagnanis offered flats in Mumbai as settlement
The insider added, "The Bhagnanis have said to have offered around two to three flats in Mumbai in lieu of the alleged dues." However, this proposal has not resolved the dispute. "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," said the source.