Popular Tamil actor Sivakarthikeyan, known for his charismatic roles, has taken a legal stand against a prominent film producer over a significant financial dispute. The actor has approached the Madras High Court, filing a complaint against Studio Green Films producer K.E. Gnanavelraja. The core of the issue revolves around the alleged non-payment of his complete remuneration for the 2019 film 'Mr. Local', amounting to a total sum of Rs. 15 crore.
The Contract and the Unpaid Dues
According to reports, Sivakarthikeyan entered into a formal agreement with the producer on July 6, 2018. The contract clearly stipulated that his total fee for starring as the lead in 'Mr. Local' was Rs. 15 crore, to be paid in several installments. A crucial clause stated that the final installment of Rs. 1 crore was due before the film's release. However, the actor claims this payment was never made.
While 'Mr. Local' was released in theaters on May 17, 2019, Sivakarthikeyan alleges that only Rs. 11 crore had been paid by that date. Despite the film's release and subsequent reminders from the actor, the remaining balance of Rs. 4 crore remains unpaid even several years later. This persistent default ultimately forced the actor to seek legal recourse for recovery.
Income Tax Notice Adds to the Woes
The financial dispute took a more complicated turn when Sivakarthikeyan received a notice from the Income Tax Department. The notice, issued on February 1 of this year, was a consequence of the producer allegedly failing to deposit the Tax Deducted at Source (TDS) for the Rs. 11 crore already paid to the actor.
Although Sivakarthikeyan challenged this notice with a separate writ petition, the tax authorities proceeded to deduct approximately Rs. 91 lakh from his bank account. This deduction covered the assessment years 2019–20 and 2020–21. This development, where the actor faced a financial penalty for the producer's alleged lapse, directly prompted the filing of the current lawsuit to resolve the overarching payment issue.
Legal Moves and Industry Implications
In his petition to the Madras High Court, Sivakarthikeyan has made specific requests for interim relief. He has urged the court to restrain producer K.E. Gnanavelraja from making further investments in his ongoing cinematic projects, which reportedly include films like 'Rebel,' 'Chiyan 61,' and 'Pathu Thala'.
Furthermore, the actor has sought an injunction to prevent the producer from transferring any theatrical or digital (OTT) rights related to these films until the monetary dispute concerning 'Mr. Local' is fully settled. Justice M. Sundar has listed the matter for a hearing, bringing renewed scrutiny to issues of payment transparency and contractual adherence within the Indian film industry.
This case highlights the behind-the-scenes financial challenges that can exist in the glamorous world of cinema. As Sivakarthikeyan gears up for the release of his much-anticipated film 'Parasakthi', this legal battle underscores the importance of clear financial agreements and timely payments between artists and producers.
