The financier had allegedly threatened him and demanded Rs 90 lakh against a Rs 23.5 lakh loan for a movie
The financier had allegedly threatened him and demanded Rs 90 lakh against a Rs 23.5 lakh loan for a movie
Producer Saravanan, who had lodged a complaint against Chennai-based financier Govindrajan for cheating and criminal intimidation, has decided to withdraw the case.
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Saravanan had borrowed Rs 23.5 lakh from Govindrajan for his film, but the financier allegedly demanded Rs 90 lakh from him as repayment, and threatened him with dire consequences if he failed to pay up.
Saravananan has agreed to pay Govindrajan Rs 50 lakh now to settle the matter.
Since October 2009, Saravanan has been shooting for a movie that is being made in two languages. The film, Lahiri in Kannada and Yaar Indha Devathi in Tamil, is slated for release in November.
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Govindrajan extended him the loan after getting his signature on stamp papers. Saravanan then went to Malaysia to shoot the remaining songs.
However, he overshot the budget, which upset Govindrajan and they had a dispute over the matter. Govindrajan allegedly threatened Saravanan and demanded Rs 90 lakh or sale rights of the movie.
However, Saravanan ignored his threat. In June, an enraged Govindrajan allegedly told Sarvananan that he was sending his henchmen to cut off his and his co-producer Girish's limbs if they did not pay Rs 45 lakh within 24 hours.
Sarvanan approached Mico Layout police, who allegedly refused to entertain his complaint.
On August 21, he moved an application in the VI additional chief metropolitan magistrate's court, which directed the police to investigate the case. Accordingly, the police charged Govindrajan and his associates in the case.
However, the case has now been settled out of court with arbitration between the Tamil film industry honchos and Saravanan.
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"We have reached a compromise, and I will pay Govindrajan Rs 50 lakh. The case is settled," Sarvanan told MiD DAY.
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