‘Kedarnath’ producer sold film’s rights to 3 people, made ₹31 crore: Chargesheet

On July 27 last year, a FIR was filed following film producer Vashu Bhagnani’s complaint that producer Prerna Arora’s company KriArj Entertainment Private Limited had cheated him of ₹31.6 crore.

The Economic Offences Wing (EOW) of Mumbai Police filed a 1,176-page charge sheet on Monday against film producer Prerna Arora for selling distribution rights of the film ‘Kedarnath’ to multiple companies. Arora, who was arrested on December 7, 2018, has been charged with sections 420 (cheating) and 120B (criminal conspiracy)

Film producer Prerna Arora has been charged with selling distribution rights of the film ‘Kedarnath’ to multiple companies. (HT File)

HT had first reported on July 27 last year, that a first information report was filed following film producer Vashu Bhagnani’s complaint that Arora’s company KriArj Entertainment Private Limited had cheated Bhagnani of ₹31.6 crore.

According to the charge sheet filed on Monday, Arora, her mother Pratima and Arjun N Kapoor (a director at KriArj Entertainment) signed a deal with Gothic Entertainment Pvt Ltd for distribution rights of the films ‘Kedarnath’ and ‘Padman’ on November 23, 2017. Then on December 8 and 16, 2017, Arora sold the distributions rights of ‘Kedarnath” to Padma Ispat private Limited and Bhagnani’s Puja Films respectively. “She concealed the information of dealings from all three and collected huge funds from them with fraudulent intentions,” said an EOW officer familiar with the investigation.

The probe also revealed that Bhagnani had been asked to pay Rs10 crore for production and distribution of ‘Padman’ in January in exchange for first claim on the revenue. Similar terms were offered to him for ‘Kedarnath’. Arora and Pratima allegedly also sought ₹9 crore to buy a house in Pali Hill from Bhagnani. As per a contract signed on January 17 2018, KriArj would pay ₹20 crore to Puja Films by April 15. If it failed to do so, Puja Films would be paid from the revenue of KriArj’s next film. Sony Films was made party to the contract.

When KriArj failed to repay Puja Films within the deadline, the accused told Bhagnani that they would eventually pay him ₹25 crore. However, on April 16, Bhagnani learned that Gothic Entertainment had also claimed revenue share of ‘Padman’.

Following an investigation, Arora was arrested on December 7, 2018. In addition to this case, there are two more criminal cases against Arora that are being investigated by the EOW. A fourth case is being probed by Delhi Police. While Arora is in Byculla women’s jail, her mother Pratima and Kapoor are yet to be arrested.