After Akhanda 2, court stays Karthi’s Vaa Vaathiyaar as producer fails to clear Rs 21.78 cr liability

The amount was originally borrowed from businessman Arjunlal Sundardas by Vaa Vaathiyaar maker, who was declared insolvent by the Madras High Court in 2014.

Court stays Karthi's Vaa Vaathiyaar. (Photo: IMDb)

Films from the South have lately been hitting roadblocks—not because of censor issues or controversial scenes, but due to lingering financial disputes involving producers. Recently, the makers of Akhanda were accused of failing to clear a liability of Rs 27.70 crore owed by its group firm, 14 Reels Entertainment Pvt Ltd, to Eros International Media Ltd. Though that matter was eventually settled for Rs 10 crore, a similar issue has now stalled the release of Karthi and Krithi Shetty’s Vaa Vaathiyaar.

The Madras High Court has issued a stay on the film after noting unpaid dues worth Rs 21 crore. Studio Green’s KE Gnanavel Raja, the producer of Vaa Vaathiyaar, was found to have an outstanding debt of Rs 10.35 crore, which ballooned to Rs 21.78 crore over the years due to accumulated interest. The amount was originally borrowed from businessman Arjunlal Sundardas, who was declared insolvent by the Madras High Court in 2014. Since then, the court-appointed official assignee managing his assets has been seeking recovery of the dues.

After a recent hearing, the High Court considered the assignee’s plea to halt the film’s release, with the counsel arguing that Gnanavel had been given multiple opportunities to repay the debt but failed to do so.

In the most recent hearing, the producer reportedly offered to pay Rs 3.75 crore within 24 hours and submitted property documents as security for the remaining balance. However, the court rejected his proposal.

The High Court then ordered a stay on the release of Vaa Vaathiyaar across all platforms until the debt is fully repaid.

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The case itself dates back to 2011, when Gnanavel and Arjunlal agreed to co-produce a film by investing Rs 40 crore each. Arjunlal invested Rs 12.85 crore before withdrawing from the project. After he was declared insolvent in 2014, the official assignee moved the High Court in 2016 seeking repayment of the Rs 10 crore debt, along with 18% interest from 2013.

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The makers have confirmed the postponement on social media, stating only that the film will release soon—without mentioning the legal issue or announcing a new release date.

Meanwhile, Akhanda 2, which was scheduled to release on December 5, will now hit theatres tomorrow. The new release date was finalised after 14 Reels Entertainment and Eros International reached a settlement of Rs 10 crore—Rs 5 crore to be paid immediately and the remaining Rs 5 crore to be cleared by September next year without fail.

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