Raja Saab: PMF Court Case, What Happened

As we had reported earlier in the day today, a leading Telugu production house People media Factory got caught in legal dispute at the Delhi High Court. There is a lot of confusion on this matter. Here is an inside report on what really happened.

People Media Factory (PMF) signed an agreement with IVY Entertainment Pvt. Ltd., under which IVY committed to invest ₹225 crore in the film Raja Saab. As part of this deal, IVY paid ₹218 crore to PMF. Later, IVY decided to end the agreement, claiming that PMF had committed certain breaches.

PMF disagreed with IVY’s claims and approached the Hon’ble Delhi High Court, saying that the termination was wrong and based on weak and frivolous reasons. PMF also stated that they have spent much more money on the making and completion of Raja Saab than the amount given by IVY.

In reaction to PMF’s legal action, IVY filed its own case in the Delhi High Court. IVY is asking for its entire ₹218 crore investment to be returned, along with interest at the rate of 18% per year. They are basing this demand on the termination notice they issued.

Both cases are still pending in court. At the last hearing, PMF made a proposal to the court. They offered to deposit the entire ₹218 crore, along with interest, into the court before the movie is released in theatres. In return, PMF asked the court to ensure that IVY will not interfere in the selling, distribution, or exploitation of the film.

The Hon’ble Court has now asked IVY to give a counter-proposal in response to PMF’s offer. The court also told both sides to work together to find a possible solution.

The dispute remains unresolved, but the court’s directions suggest that the matter could move towards a settlement if both parties agree on the terms before the film’s release.