Kanguva and Thangalaan releases are in trouble, Madras High Court asks producers to deposit Rs 1 crore each

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The release of the highly anticipated films Thangalaan and Kanguva has hit a significant roadblock following a directive from the Madras High Court. The court has instructed the producer, KE Gnanavel Raja of Studio Green, to deposit Rs 1 crore for each film prior to their respective releases. This order stems from a complex legal dispute involving financial agreements that date back several years, putting the upcoming releases of both films in jeopardy.

 
The trouble began when Gnanavel Raja and the late realtor and financier Arjunlal Sunderdas decided to co-produce a film by investing Rs 40 crore each. Sunderdas initially paid a part of this amount, which was utilized in the pre-production phase of the project. However, due to a financial crunch, Sunderdas opted out of the project, leading to a significant setback for the film's production. The situation escalated when Sunderdas filed a petition against Studio Green, seeking to recover his investment.

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In 2019, the matter was brought before the High Court, which ordered Studio Green to pay Sunderdas Rs 10.35 lakh with an 18% annual interest. Gnanavel Raja's counsel later revealed that Sunderdas had struck a deal with him after failing to pay the agreed amount for the film's production. Sunderdas was given the Hindi remake rights to several films, including "All in All Azhagu Raja," "Biriyani," and "Madras," as compensation for his investment in the project.

 
Despite this arrangement, the official assignee, appointed by the High Court to handle Sunderdas' financial affairs after he was declared insolvent, filed a petition against Studio Green for not complying with the 2019 order. The situation was further complicated by the fact that Gnanavel Raja's counsel could only produce a photocopy of the agreement regarding the Hindi remake rights, rather than the original document.

 
As a result of this ongoing legal battle, the Madras High Court has ordered Studio Green to deposit Rs 1 crore for each of the upcoming films "Thangalaan" and "Kanguva" before their release. "Thangalaan," starring Chiyaan Vikram, is scheduled for release on August 15, while Suriya's "Kanguva" is slated for release on October 10. The court's decision has put the releases of these films in a precarious position, as failure to comply with the order could lead to further delays or even a complete halt of their distribution.

 
The court's ruling comes as a significant blow to both films, which have generated substantial buzz and anticipation among fans. The legal dispute not only threatens the financial stability of the projects but also raises concerns about the future of the involved production house, Studio Green.

 
The legal troubles surrounding "Thangalaan" and "Kanguva" highlight the broader challenges faced by the Tamil film industry, where financial disputes and legal battles are not uncommon. Such issues can severely impact the production and release schedules of films, leading to substantial financial losses for producers, distributors, and other stakeholders.

 
Moreover, the court's decision to enforce a substantial financial deposit before the release of these films sets a precedent that could influence future legal disputes in the industry. Producers may now face additional financial burdens in ensuring that their films are released on time, especially in cases where previous financial agreements have not been honored.