Kalki 2898 AD Producers Accuse US-Europe Distributors of Fraud

Prabhas-led Kalki 2898 AD, hailed as one of Indian cinema’s biggest blockbusters of 2024, grossed over ₹1054 crore globally and became the third highest-grossing Indian film domestically.

However, its producers, Vyjayanthi Movies, are now embroiled in a legal tussle with US-Europe distributors, accusing them of falsifying box office collections and withholding payments.

The Allegations

Vyjayanthi Movies alleges that the distributors manipulated overseas box office figures and failed to settle dues from the film’s collections in the US, Canada, and Europe.

An email from Vyjayanthi Movies to the distributors, leaked on social media platform X (formerly Twitter), threatened legal action if payments were not settled within 48 hours.

The production house later confirmed the authenticity of the email and detailed the ongoing conflict.

According to Vyjayanthi Movies, the distributors had reported the film earned $1.3 million (approximately ₹10.8 crore) in Europe. Despite this, they claimed the film failed to meet expectations, asserting it made only ₹3 crore in the region, significantly lower than the advance payment of ₹5 crore already provided.

In the US and Canada, the distributors are reportedly withholding ₹2 crore, further claiming that they are awaiting ₹3 crore from other regions and would clear pending dues once the funds are received.

Producers’ Statement

Vyjayanthi Movies shared their frustration in a statement to Hindustan Times:

"The US and Europe distributors are the same; they have cheated the producers. The film made $1.3 million in the region (Europe), according to trackers. They have given the producers ₹5 crore advance and are now claiming it has not made even that and made only ₹3 crore. The producers plan to proceed legally now because they’re left with no other choice. The distributors haven’t even responded to the mail and have leaked it instead. The producers will wait for a response before proceeding with legal action.”

Financial Dispute and Legal Threats

The financial discrepancies have left Vyjayanthi Movies with no choice but to take legal action if the distributors fail to respond. The production house has issued an ultimatum, demanding that the outstanding payments be cleared within 48 hours. If the distributors fail to comply, the matter will be escalated to court.

Bigger Implications

This dispute highlights broader challenges in international film distribution, where transparency and accurate reporting are critical.

It also underscores the risks producers face when dealing with overseas distributors, especially in high-budget projects like Kalki 2898 AD, which require significant investments.

The Road Ahead

For Vyjayanthi Movies, recovering the withheld funds is crucial, given the high stakes involved in the film’s production and distribution.

The producers are determined to protect their interests, with legal proceedings looming if the distributors do not settle their dues promptly.

The controversy adds an unexpected chapter to the journey of Kalki 2898 AD, which was celebrated for its grandeur and massive box office success.

Whether the producers and distributors can resolve the issue amicably or face a prolonged legal battle remains to be seen.