The film was directed by Rahul Dholakia and featured Sanjay Dutt, Bipasha Basu and Kunal Kapoor in lead roles. image/twitter
The case, as mentioned in the CBI’s FIR, a copy of which CNN-News18 has, states that IDBI Bank has filed a case of cheating, misappropriation of funds and breach of trust against the directors of GS Entertainment Pvt Ltd (GSEPL). Filed a complaint regarding criminal infringement. ,
The Central Bureau of Investigation (CBI) has registered an FIR against GS Entertainment Pvt Ltd (GSEPL) directors Jaspreet Singh Walia (alias Bunty Walia) and Guneet Singh Walia (alias Jassi Walia) in an alleged bank fraud case.
The matter, as mentioned in the CBI’s FIR, a copy of which CNN-News18 has, states that IDBI Bank has filed a complaint against the company relating to fraud, misappropriation of funds and criminal breach of trust .
In June 2008, a foreign currency loan of Rs 2.35 million and a term loan of Rs 4.95 crore were reportedly sought by the producers of the film Lamha under a film financing scheme. The film was directed by Rahul Dholakia and featured Sanjay Dutt, Bipasha Basu and Kunal Kapoor in lead roles.
The loan was sanctioned to GSEPL on the personal guarantees of Walia and others. However, in 2009, the film’s release date was delayed from its original schedule due to a “dispute between the promoters and the exhibitors”. Eventually, by September 2009, the account became a non-performing asset.
Subsequently, the bank approached PVR Pictures Private Limited (PVR) and assigned them sole distribution responsibility for the worldwide release of the film. A tripartite agreement was entered into between GSEPL, PVR and IDBI Bank, with a commitment to invest an amount of Rs 8 crore from PVR to meet the necessary expenditure on print and publicity and to complete the balance post-production work.
“However, PVR failed to honor its commitment as it incurred a loss of approximately Rs 83.89 lakh (the total revenue collected by it was Rs 7.41 crore, while the expenditure incurred by it on promotion and distribution was Rs 8.25 crore) The bank alleged in the complaint.
Sources say the forensic audit report found that the cost of the project was inflated to get more bank finance and there was a difference between the provisional and audited balance sheets.
In the FIR copy, Walia, GSEPL and others have been charged under Indian Penal Code (IPC) sections related to criminal conspiracy, cheating and forgery, as well as provisions of the Prevention of Corruption Act.
Bunty and Jaspreet Walia have also produced films like Hello Brother and Pyaar Kiya To Darna Kya.
