A legal dispute between Super Cassettes Industries Private Limited (SCIPL) and Reliance Entertainment Studios Private Limited (Reliance) cast a shadow over the release of the much-anticipated film Amar Singh Chamkila on Netflix, which premiered on April 12. The conflict, reported in April 2024, centered around a loan agreement and SCIPL’s claim on the film’s revenues. As per the Indian Kanoon Organisation website, SCIPL had financed the production of eleven Hindi films by Reliance, extending a loan of Rs. 268 crores.
The agreement granted SCIPL a lien and charge on the revenues generated by these films, including future productions by Reliance, either independently or in collaboration. Further communications solidified SCIPL’s right to recover Rs. 168 crores spent on the production of six films, along with the cost of capital. SCIPL accused Reliance of defaulting on repayment, leading them to file a lawsuit seeking recovery of Rs. 60,23,73,358. This sum includes the principal amount, cost of capital, and revenue components as outlined in the loan agreement.
To enforce their lien and prevent further financial losses, SCIPL asked the Court to restrain Reliance from releasing any new films until the dues were settled. Reliance initially cooperated by assuring the Court they would refrain from releasing films or transferring related rights for two weeks. However, SCIPL raised concerns upon learning about Reliance’s plans to release five films, including Amar Singh Chamkila, which was slated for release on Netflix on April 12, 2024.
During the initial hearing, SCIPL aimed to prevent the film’s release altogether. However, their strategy shifted, and they narrowed their focus to demanding a deposit of Rs. 42.16 crores. This amount represented the sum Reliance received from Los Gatos Production Services India LLP, an affiliate of Netflix. Reliance strongly opposed the deposit, arguing that SCIPL’s request exceeded the scope of the application and that they hadn’t been given a fair chance to respond.
They further contended that “Amar Singh Chamkila” was produced by Window Seat Films LLP (WSF), a separate entity where Reliance held a 99.99% stake. As evidence, Reliance presented promotional materials listing them as a producer and statements made by their Group CEO describing the film as “Reliance Entertainment’s next.”
