Film body issues letter to Ram Gopal Varma
Bollywood films are mostly financed by persons rather than studios.
Mumbai: Following a complaint filed by Bollywood producer Bharat Shah against filmmaker Ram Gopal Varma for alleged breach of contract by him, Indian Motion Pictures Producer's Association (IMPPA) has sent a letter to Varma to explain his stand on the matter.
"We have sent a letter Friday to Varma to explain his stand on the complaint file by Shah," said Sushmaa Shiromani, Vice President IMPPA.
Shah, who had filed a complaint against Varma on August 29, had urged for an immediate action by the association to settle his claim on the matter.
In his complaint, Shah stated that he had invested Rs.250 million in Varma's production company, Varma Corporation Limited. Varma had promise that he would give Shah shares worth Rs.100 million of his company when it is listed.
Shah alleged that Varma has not kept his promise and continued making false promises without any intention to fulfill them.
"We are investigating the papers filed by Shah and waiting for a reply from Varma after which we would be able to comment. IMPPA will take some time to come to any conclusion because first we will have to investigate the case thoroughly," Shiromani said in Mumbai on Friday.
Shah had financed Varma for films like "Satya", "Mast" and "Jungle".