Ali Abbas Zafar and Jio Studios clash legally as the studio claims a paramount lien on the income

ali abbas zafar

• Ali Abbas Zafar in legal dispute with Jio Studios over production revenue rights
• Jio Studios claims lien on all current and future earnings of Zafar's company.
• Dispute may relate to OTT revenue from Bloody Daddy starring Shahid Kapoor

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Filmmaker Ali Abbas Zafar has found himself embroiled in a legal tussle with Jio Studios over rights to revenue from his production house, with the dispute now being handled through legal channels.

The conflict surfaced when Jio Studios issued a public notice in a trade magazine, asserting that, under binding contractual arrangements with Ali Abbas Zafar Films LLP effective from 30 September 2025, the studio holds a first and paramount lien on all incomes, revenues, receipts, proceeds, and earnings of the production house — present and future.

When approached for comment, representatives for Ali Abbas Zafar said that the matter is being dealt with legally, indicating ongoing consultations with legal counsel to clarify and address the dispute. Jio Studios confirmed the development but did not comment further at the time of going to press.

As quoted by Hindustan Times, Ali Abbas Zafar's team said, "The matter is being dealt with legally."

The notice advises caution within the industry and outlines Jio Studios’ claim that any income accruing to Zafar’s production entity must first be routed to the studio before any other stakeholder can claim it. Although the specifics of the underlying contract have not been fully disclosed to the public, the move signals a serious contractual disagreement over financial rights and entitlements tied to Zafar’s creative ventures.

Reports indicate that the issue may be linked to revenue generated by the OTT release of Bloody Daddy — a film directed by Zafar and starring Shahid Kapoor that debuted on an online platform in 2023. Jio Studios’ claim for a lien on earnings suggests the studio said  it has contractual priority over proceeds connected to that project or other commercial engagements associated with Zafar’s production house.

Ali  Zafar, who is gearing up to begin shooting his next large-scale action romance film with Ahaan Panday and Sharvari for Yash Raj Films, is a project that marks a significant step forward in his career as a director and producer.