In March, Amazon Prime Video had announced the mythological action film, Ashwatthama - The Saga Continues, with much fanfare at its event. The Shahid Kapoor-starrer, to be helmed by Kannada filmmaker Sachin B Ravi, was designed to be one of the streaming giant’s most ambitious productions from India. However, eight months on, we’ve heard that the project has been put on hold due to budget constraints and logistical challenges.

Sources close to Ashwatthama, which was being produced by Vashu Bhagnani’s Pooja Entertainment along with Amazon Studios, reveal that its budget was initially pegged at over Rs 500 crores. Apparently, the budget began to balloon as pre-production progressed.

An insider from the production team shared, “The project’s scale was enormous. The idea was to create something that could rival international fantasy-action films. Ashwatthama was supposed to be shot across multiple countries. But as we began working out the logistics and coordinating shoots across international locations, it became clear that staying within budget would be a serious challenge. Pooja Entertainment’s debt became another big factor.”

Kapoor had begun his physical training for the film, which would be set in the present day, with the narrative blending in mythological themes inspired by the legendary warrior, Ashwatthama, from the Mahabharata. The actor is now said to be focusing on Vishal Bhardwaj’s film instead.

A trade insider said, “Given the current state of the market, studios are being cautious about green-lighting mega-budget films. A project like Ashwatthama comes with a lot of risk.” mid-day reached out to Bhagnani, who didn’t respond till press time.

Pooja Entertainment, led by producers Vashu and Jackky Bhagnani, has been navigating a difficult phase following a series of box- office disappointments. The latest, however, is the complex web of financial controversies involving the production house in an ugly legal tussle with streaming giant, Netflix. Bhagnani has sued Netflix for cheating and non-payment of dues to the tune of nearly Rs. 47.37 crore. 

Even as Netflix issued a denial and claimed that it is Pooja Entertainment that owes them money, the case, now under investigation by the Economic Offences Wing, seems to be stacked in the favour of Bhagnanis, owing apparently to non-cooperation from Netflix India.

Speaking exclusively to HT City, the investigating officer on the case, Senior Inspector Ravindra Avhad, says, “This amount of Rs. 47.37 crore is what Netflix owes to the complainant, Vashu Bhagnani. But Netflix is not cooperating. We sent them two summonses, but they are not appearing. They haven’t replied to the letter sent to them by us. Bhagnanis came to us in April, we recorded their statements and collected the required documents. Netflix asked for some time, but aaye hi nahin. Lower level ke staff ko bhej dete hain statement ke liye, but it is Monika Shergill (Content Head, Netflix India) who should appear.”

When asked about Netflix’s counterclaim on Bhagnanis as per their media statement (see bottom right box), he adds, “I am not aware about what statement Netflix has issued, but aisa kuchh nahin hai.”

When we contacted Netflix, they responded with the same media statement given out earlier (see bottom right box). Meanwhile, Vashu Bhagnani, says, “We registered the case against Netflix in April. We have full faith in the EOW to resolve the matter.”

The Context

Vashu Bhagnani, in his complaint filed in April 2024, claimed that Netflix ‘conspired against the rights’ of his three films: Hero No 1 (yet to be fully shot), Mission Raniganj and Bade Miyan Chote Miyan. He filed a complaint against Los Gatos Production Services India, through which Netflix reports its content investments in India, Zoo Digital India and against executives of both companies. Netflix, in its response, issued a spokesperson statement on Wednesday.

Meanwhile, a source privy to the developments in the case tells us on condition of anonymity, “Bhagnanis have been in the industry for over 40 years, and right now they feel the entire industry is not supporting them through their rough patch. While they have suffered heavy losses, their last film’s director (Ali Abbas Zafar; Bade Miyan Chhote Miyan) has taken over Rs. 14 crore of their money, for which they have lodged a police complaint. They are willing to repay everyone’s pending dues, at least they should get their dues first in order to do it.”

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We registered the case against Netflix in April. We have full faith in the EOW to resolve the matter.

- Vashu Bhagnani, producer

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“These claims are completely unfounded — indeed it’s Pooja Entertainment that owes Netflix money. We have a strong track record of partnership with the Indian creative community and are working with the authorities to resolve this dispute,” Netflix spokesperson said.

Film producer Vashu Bhagnani’s Pooja Entertainment has been under the scanner for non-payment of fees to its cast and crew, who have worked on three projects, including Bade Miyan Chote Miyan. Amid all this, Ravi Kumar, a 45-year-old focus puller who was struggling to make ends meet due to non-payment, has received aid from actor Tiger Shroff. Kumar met with an accident last year, which left him bedridden for eight months.

“[After the accident] I’ve been taking up light work. But I’m not getting much work,” he says, adding that his savings were spent paying off medical bills, and he had been promised payment for the unreleased film Mere Husband Ki Biwi, which he worked on in 2022.

When he learnt of Kumar’s predicament, Tiger extended help to the crew member. “My brother, Prasad, had worked on his father (actor) Jackie Shroff’s 1994 film, 1942: A Love Story, where he fractured his hand on the sets. Tab Jackie sir ne mere bhai ka operation karaya tha. Now, his son (Tiger) helped me. I was the focus puller on Heropanti. So he came forward to help me,” says Kumar, who doesn’t wish to disclose the amount, that we have learnt is in lakhs.

Adding how the Shroff family has been looking out for him, Kumar adds, “His mum (Ayesha Shroff) called me on Tuesday. Tiger might not remember that I worked on his debut film. But as a human being, he still came forward to help.”

The sharp swings in the share price of a Mumbai-based film production company in the past month has raised eyebrows on Dalal Street. In the previous six trading sessions, Vashu Bhagnani Industries, formerly known as Pooja Entertainment, has been locked in the daily lowest tradable limit on the BSE, declining nearly 36% in this period following news reports that the company was under financial stress.

Shares of the company, owned by veteran film producer Vashu Bhagnani, have rallied 1,168% in the past one year, and 355% so far in 2024, taking the company's market cap from Rs. 82 crore a year ago to over Rs. 1,000 crore now.

The stock closed at Rs. 298.85 on Monday, 5% lower - the lowest tradable limit in the trading session. The recent losing spree in the shares has continued even after the company, in a stock exchange disclosure, denied news reports that said the entity sold off its office building, laid off staff and is seeing delay in salary payments.

Before the news surfaced on June 24, shares of Vashu Bhagnani Industries had almost doubled in just one month, from Rs. 209 on May 24 to Rs. 410.

"Pooja Entertainment is a classic example of a share doing better than the market but without any fundamentals," said Arun Kejriwal, founder, KRIS, a Mumbai-based investment consultancy firm. "Such price movements make one believe that it is not natural but artificial."

The company's consolidated profit for FY24 stood at Rs. 8 crore as against Rs. 2.86 crore the previous year. Consolidated revenues were at Rs. 58.07 crore during the year as against Rs. 46.6 crore in the previous year.

Film trade analysts claim the company's recent movies have not been profitable. "We have not seen Pooja Entertainment's movies do well in the last 23 years. The production house's last hit movie was in 2001 named 'Mujhe Kuchh Kehna Hai'; and ever since then, all their movies have tanked," said Komal Nahata, a trade analyst.

"Recent releases like Bade Miyan Chotte Miyan, Mission Raniganj, and Bellbottom have also failed to break this streak and were box office flops."

Metaverse, the alternate digital reality, is having its moment. This technology lets participants connect, work and live life digitally with Augmented Reality (AR) and Virtual Reality (VR) — to create spaces for rich user interaction, mimicking the real world. American socialite Paris Hilton and rapper Snoop Dogg are among the few celebs who have bought virtual space in the Metaverse.

Pioneering the movement in India, Pooja Entertainment has bought their first virtual land in the Metaverse, becoming the first Indian production house to have stepped into this exciting new universe.

The space, called Poojaverse, will be a virtual one for the makers to create first-of-its-kind, quality immersive experiences for viewers. They have recently announced their project BadeMiyan ChoteMiyan, making it the first ever Indian film to be announced within the Metaverse.

Head honchos, producers Deepshikha Deshmukh and Jackky Bhagnani have not only pioneered the digital technology, but are also going to make the experience a power-packed one for audiences. While other players globally are still contemplating this new avenue, Pooja Entertainment has already owned this exciting prospect and brought it to life in their own inimitable manner.

Deshmukh believes that Metaverse is the new frontier of the internet, and it’s a new way to connect and engage with audiences and fans. She says, “Metaverse is becoming the future of virtual hangouts and is going to be the new way of consuming content. Poojaverse is a step, from our end, in that very direction. I am super stoked to have our biggest and most ambitious project, BadeMiyan ChoteMiyan, in the Metaverse. With time and a more nuanced understanding of this virtual space, we intend to make Poojaverse the absolute go-to space for quality entertainment and various aspects of filmmaking in the digital world.”

Talking about their plans to integrate the Bade Miyan Chote Miyan franchise with the Metaverse experience, Bhagnani says, “We are really excited to announce our foray into our very own virtual space, Poojaverse, and our next big film BadeMiyan ChoteMiyan — the first ever film from India to showcase its announcement on the Metaverse.”

The announcement video of the film has left the fans enthralled. The team at Pooja Entertainment is excited about bringing two generations together with their biggest action entertainer, BadeMiyan ChoteMiyan, featuring actors Akshay Kumar and Tiger Shroff in titular roles. This Pooja Entertainment production is set to release in five languages, Hindi, Telugu, Tamil, Kannada and Malayalam, and is expected to smash all box-office records when it hits the big screen on Christmas 2023.