Lights, camera, legal action: Netflix faces Bollywood drama over Rs 47 crore dispute

The Economic Offences Wing EOW of the Mumbai Police has started an inquiry in response to a complaint lodged by Bollywood producer Vashu Bhagnani. He alleges that a company associated with Netflix along with 12 other parties engaged in cheating and conspiracy concerning the rights to three movies. These films are Hero No. 1, Mission Raniganj and Bade Miyan Chote Miyan.

Bhagnani claims that he has not been paid 47.37 crore for the subscription video on demand (SVOD) rights to these films which were awarded through a content license agreement. The producer has lodged a complaint against Los Gatos Production Services India, the firm responsible for Netflix’s content investments in India Zoo Digital India, a media localization service provider and various executives from both companies.

In his lawsuit Bhagnani alleges that Pooja Entertainment his production firm was forced to renegotiate the terms of the agreement and was pressured to hand over one of the films to Zoo Digital India. He claims that the movie was exposed to the public before its official release causing harm both financially and to its reputation.

Netflix has rejected the accusations. A speaker stated, “These claims are completely unfounded. In fact, Pooja Entertainment owes Netflix money. We have a strong partnership with the Indian creative community and are working with the authorities to resolve this matter.”

Executives from Los Gatos Production Services have been called in by the EOW for questioning in an investigation. A high-ranking police officer verified the investigation and mentioned that a determination regarding the filing of a First Information Report (FIR) will be made after the enquiry concludes.

The conflict traces back to May 2021 when Pooja Entertainment struck a deal with Los Gatos Production Services regarding SVOD rights through a content licence agreement. Bhagnani alleges that his company poured 645 crore into both production and marketing efforts while the other party was obligated to remit 281 crore as per the contract. The inquiry is still underway. PeepingMoon