Suriya’s Kanguva Release Faces Legal Roadblock
The eagerly awaited Tamil movie Kanguva, featuring superstar Suriya alongside Bollywood actors Bobby Deol and Disha Patani, has hit a legal roadblock. The Madras High Court has issued an order that the movie cannot be released without a ₹20 crore deposit by the producer K.E. Gnanavelraja. This decision, announced by a Division Bench of Justices G. Jayachandran and C.V. Karthikeyan, underscores an ongoing legal battle between the film’s producer and the High Court’s Official Assignee.
The Court’s Order: ₹20 Crore Deposit or No Release
The court ordered that if Gnanavelraja does not make the ₹20 crore deposit by Wednesday midnight, the movie’s scheduled release on Thursday will not proceed. This decision is a follow-up to an earlier order from August, which had permitted the release of Kanguva if the producer deposited ₹1 crore. However, the Official Assignee argued that the producer should deposit the entire liability amount, now totaling ₹26.34 crore.
Background: A Decade-Long Legal Dispute
The case dates back to 2011, when Gnanavelraja entered into a co-production agreement with businessman Arjunlal Sunderdas, who was meant to invest ₹40 crore in the film. However, after investing ₹12.85 crore, Sunderdas exited the project. Later, in 2014, the Madras High Court declared Sunderdas insolvent, transferring responsibility for managing his financial liabilities and assets to the Official Assignee. This step was taken to address the dues owed to those who had invested in Sunderdas’ real estate and finance ventures.
In 2016, the Official Assignee filed an application requesting Gnanavelraja to repay the sum of ₹10.35 crore with an annual interest of 18%, calculated from 2013. The Madras High Court accepted the application in 2019, directing the producer to repay the entire amount, including interest, to the court’s Official Assignee. Although Gnanavelraja appealed to the Supreme Court, his appeal was dismissed in September 2024.
The Unpaid Dues and Legal Obstacles to Film Releases
Since the initial court order, the Official Assignee has been trying to collect the dues. Despite repeated legal actions taken before each new film release, only ₹3.93 crore had been recovered, including ₹1 crore deposited before the release of Thangalaan, another film by Studio Green Films, which Gnanavelraja is affiliated with.
The Court’s Stand: No More Leniency
Despite Gnanavelraja’s claims that he no longer has an active role in Studio Green Films and that he has not produced any movies in over two years, the court expressed frustration over the delayed payments. The court remarked, “The leniency shown to the Judgment Debtor so far, believing that he has a bona fide intention to discharge the debt, appears to be misplaced sympathy.” In response, the Division Bench ruled that without paying the amount due, Kanguva would not be released.
What’s Next for Kanguva?
With the release of Kanguva hanging in the balance, it remains to be seen whether Gnanavelraja will be able to secure the funds to make the required deposit. If he manages to deposit ₹20 crore by the deadline, Kanguva can proceed with its scheduled release. However, if he fails to meet this requirement, the film’s premiere will be indefinitely postponed, disappointing Suriya’s fans and Bollywood enthusiasts. Book Tickets Now
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