They are at loggerheads. Reason: Ram Gopal Varma's decision to make the sequel Sarkar Raj with the same cast - Amitabh and Abhishek Bachchan - but with Adlabs Films and not K Sera Sera which holds the original copyright of the desi Godfather.
When K Sera Sera learnt of Varma's plan to make a sequel with Anil Ambani's Adlabs, it sent a letter to both, the filmmaker and project's producer.

That was six months ago. Varma's deal with Adlabs has continued. Now that film – SarkarRaj - is in its final phase of post-production, K Sera Sera intends to bring a stay on its release.
Collaborations
Before this flare-up, K Sera Sera and Ram Gopal Varma have collaborated on 14 movies including Ram Gopal Varma Ki Aag, Sarkar, Darna Zaroori Hai, Darna Mana Hai, James, My Wife's Murder, Sarkar , D, Naach, VaastuShastra, Gayab, Ab Tak Chhappan and EkHasinaThi.