EOW claims Netflix not complying in Vashu Bhagnani’s Rs 47.37 crore investigation

EOW claims Netflix not complying

Pooja Entertainment, led by Vashu and Jackky Bhagnani, is currently entangled in a legal dispute with Netflix over a hefty sum of Rs 47.37 crore. This dispute comes on the heels of a series of underwhelming box office performances from their recent films. Vashu Bhagnani has filed a lawsuit accusing Netflix of cheating and non-payment, a claim Netflix has firmly denied, countering that it is Pooja Entertainment that owes them money. The case is now being investigated by the Economic Offences Wing (EOW), with the scales seemingly tipping in favor of the Bhagnanis due to Netflix India's alleged lack of cooperation.

In an interview with Hindustan Times, Senior Inspector Ravindra Avhad, the officer handling the case, shed light on the ongoing investigation. "This amount of Rs 47.37 crores is what Netflix owes to the complainant Vashu Bhagnani. But Netflix is not cooperating. We sent them two summons, but they are not appearing. They haven't replied to the letter sent to them by us. Bhagnanis came to us in April, we recorded their statements, collected the required documents. Netflix asked for some time, but aaye hi nahi. Lower level ke staff ko bhej dete hain statement ke liye, but it is Monica Shergill (Content Head, Netflix India) who should appear," he explained.

When questioned about Netflix’s counterclaim, Avhad responded, "I am not aware about what statement Netflix has issued, but aisa kuchh nahi hai." This suggests that despite Netflix's public assertion, there might be little basis to their claim in the eyes of the investigation thus far.

Netflix, on the other hand, has remained resolute in its stance. In a media statement, they said, “These claims are completely unfounded — indeed it’s Pooja Entertainment that owes Netflix money. We have a strong track record of partnership with the Indian creative community and are working with the authorities to resolve this dispute.”

Vashu Bhagnani, for his part, expressed confidence in the EOW’s ability to resolve the matter. "We registered the case against Netflix in April. We have full faith in the EOW to resolve the matter,” he said.

The lawsuit, filed in April 2024, accuses Netflix of conspiring against the rights of three Pooja Entertainment films: Hero No 1 (yet to be completed), Mission Raniganj, and Bade Miyan Chote Miyan. Bhagnani’s complaint targets Los Gatos Production Services India, the entity Netflix uses for content investments in India, as well as Zoo Digital India and executives from both firms.

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In the midst of this legal battle, a source close to the Bhagnanis disclosed that the veteran producers feel let down by the industry. “Bhagnanis have been in the industry for over 40 years, and right now they feel the entire industry is not supporting them through their rough patch. While they have suffered heavy losses, their last film’s director (Ali Abbas Zafar; Bade Miyan Chote Miyan) has taken over 14 crores of their money, for which they have lodged a police complaint. They are willing to repay everyone's pending dues, at least they should get their dues first in order to do it,” the source stated.

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With the case ongoing, it remains to be seen how this legal tussle will unfold, but it certainly marks a challenging period for Pooja Entertainment and their long-standing position in the Indian film industry.