Mumbai: The Economic Offences Wing (EOW) of the Mumbai Police has commenced a preliminary enquiry (PE) based on a complaint filed by Bollywood producer Vashu Bhagnani against a company linked to Netflix and 12 others, alleging cheating and conspiracy over rights for three films, people in the know told ET.

The EOW has summoned executives of Los Gatos Production Services India, the entity through which Netflix reports its content investments in India, they said. Netflix rejected the allegations as "unfounded".

According to Bhagnani, he has yet to receive Rs. 47.37 crore towards subscription-video-on-demand (SVOD) rights he had granted on these films: Hero No 1, Mission Raniganj and Bade Miyan Chote Miyan. He has named Los Gatos Production Services, Zoo Digital India that provides subtitling, dubbing and media localization services and 10 executives of the two companies as accused.

He also alleged that his company, Pooja Entertainment, was coerced into revisiting the commercial terms of the deal and induced to deliver one of the movies to Zoo Digital India that had allegedly leaked the film in public even before its theatrical release, causing him a "financial and reputation loss".

"These claims are completely unfounded. Indeed, it's Pooja Entertainment that owes Netflix money," a Netflix spokesperson told ET. "We have a strong track record of partnership with the Indian creative community and are working with the authorities to resolve this dispute."

A senior police official said they registered the PE after verifying the complaint and that an investigation is underway. "During the course of the enquiry, officials linked to the firm were summoned and they have joined the investigation," he said, adding: "Once the enquiry is completed, based on its findings a call will be taken whether or not to convert the PE into a first information report."

According to the complaint, Bhagnani's Pooja Entertainment in May 2021 entered into a content licence agreement with Los Gatos Production Services on the SVOD rights of the three films. While Pooja Entertainment was to foot Rs. 645 crore towards the production and publicity of the films, the accused firm was to pay it Rs. 281 crore under the multiple films licence agreements, he claimed.