A Mumbai sessions court has rejected anticipatory bail for three production executives tied to Naagzilla, the Kartik Aaryan-led fantasy-adventure comedy backed by Dharma Productions and Mahaveer Jain Films. The complaint alleges that more than Rs 3.92 crore was spent without supporting bills in a production budgeted at Rs 82.50 crore.
The accused are Kuldeep Singh Champawat, a consultant and signing authority; Mahipal Karan Rathore, a service provider and executive producer; and Shivkumar Tiwari, the line producer who appointed vendors for vehicles, makeup and junior artistes. They have not been convicted. The court has only concluded that there is enough prima facie material to keep them in the investigation, with custodial interrogation needed for a detailed probe.
Why the bail ruling matters
For an industry that runs on daily vendor payments and tight shooting schedules, this is a control failure story rather than a routine cost dispute. The complaint says the three bypassed standard operating procedures and allegedly pushed through expenses of Rs 3,92,76,308 without bills or documentation. Prosecutors also point to inflated vendor bills and fabricated invoices.
That alleged spend is roughly 4.8% of the reported production budget. It is the kind of leakage that can sit inside a large film’s cost line until an audit or a dispute forces it into the open.
- Vendor selection and payment approval sat in a small group, increasing concentration risk.
- Expenses allegedly cleared without bills, breaking the audit trail.
- The investigating officer has alleged commissions and expensive items were demanded from vendors in exchange for work or payment clearance.
The production lesson
For line producers, production accountants and studio finance teams, the immediate takeaway is procedural: make vendor files part of the deliverable, not the post-mortem. Reconcile each invoice against a signed contract and proof of delivery before funds move. A second sign-off on vendor spend above a pre-set limit is cheap insurance once a shoot is running at speed.
Naagzilla: Naag Lok Ka Pehla Kaand, directed by Mrighdeep Singh Lamba and written by Gautam Mehra, is scheduled for cinemas on February 12, 2027. The release plan is separate from the legal process, but the case will keep the film’s financial controls in the trade’s line of sight.
Source: bollywoodHungama.com
