The release of Kanguva, the highly anticipated film starring Suriya, Disha Patani, and Bobby Deol, has encountered yet another hurdle. Just one day before its scheduled premiere on November 14, the Madras High Court ordered the film’s producer, KE Gnanavelraja, to deposit Rs 20 crore by midnight on November 13. If he fails to do so, the court warned that the film’s release would be blocked.
Gnanavelraja, owner of Studio Green Films, is embroiled in a bankruptcy case involving a debt of Rs 26.34 crore owed to Arjunlal Sunderdas, who was declared bankrupt. Due to delays in settling this debt, the court directed Gnanavelraja to pay the full amount.
This ruling followed a request from the Official Assignee, who is overseeing Arjunlal’s assets, to revise an earlier order that allowed the film’s release with a deposit of only Rs 1 crore. The Assignee argued that Gnanavelraja should be accountable for the entire debt.
The dispute traces back to an agreement in 2011, in which Arjunlal and Gnanavelraja planned to co-produce a film, each investing Rs 40 crore. However, Arjunlal only contributed Rs 12.85 crore before pulling out. In 2014, he was declared insolvent by the court, and an Official Assignee was appointed to manage his debts and assets. He passed away shortly.
During the bankruptcy proceedings, Gnanavelraja was found to owe Arjunlal Rs 10.35 crore, leading the Assignee to petition for repayment, with interest from 2013. Though the court ordered repayment in 2019, Gnanavelraja appealed to the Supreme Court, which dismissed the appeal in September 2024.
To date, the Assignee has managed to recover only Rs 3.93 crore, despite attempts to secure funds before each release by Studio Green Films. Recently, Gnanavelraja paid Rs 1 crore before the release of Thangalaan.
Frustrated with the delays, the court expressed regret over its previous leniency towards Gnanavelraja, noting that creditors have been waiting nearly a decade for their payments. The court stated it was left with “no other alternative” but to halt Kanguva’s release if the debt remained unpaid.
“The decree holder [Official Assignee], having waited for nearly six years after obtaining the decree, is unable to pay the creditors who have been waiting nearly 10 years,” the court stated, as reported by The Hindu.
“The leniency shown to the Judgment Debtor, believing in his intent to repay, appears misplaced. This court has no alternative but to order the film’s release be restrained if the decree is not discharged.”
Kanguva has faced multiple obstacles. Initially scheduled for an October 10 release, it was postponed to avoid clashing with Rajinikanth’s Vettaiyan. Now, the film’s team faces further disappointment as theatres have opted to continue showing Sivakarthikeyan’s Amaran, which is performing well at the box office, limiting the screen count for Kanguva.
Kanguva is directed by Siva of Viswasam fame. The film is releasing in multiple languages including Telugu, Hindi, and Kannada.