AP FiberNet serves notice to Ram Gopal Varma, four others over ‘illegal payments’ made for Vyuham movie

AP State FiberNet Limited (APSFL) MD K. Dinesh Kumar on Saturday served a legal notice to film director and producer Ram Gopal Varma, APSFL former MD M. Madhusudhan Reddy and former AGM Vuyyuru Guna Sasank Reddy, film producer Gottumukkala Ravi Sankar Varma and M/s RGV Aarvi Group demanding a payment of approximately ₹1.15 crore — which was earlier paid to them by APSFL for telecasting Vyuham movie on APSFL’s First Show platform — with 12% interest from the date of payment made to RGV Aarvi Group till the date of realisation, and 18% on the said amount towards penalty, within 15 days of receiving the notice. 

Mr. Dinesh Kumar stated that Mr. Ram Gopal Varma and Mr. Ravi Sankar Varma were the managing partner and partner of RGV Aarvi Group respectively. Mr. Sasank Reddy had entered into an agreement on March 5, 2024 with the Vyuham movie makers, i.e RGV Aarvi Group, for telecasting the movie on a non-exclusive basis for 60 days from the date of agreement. 

Mr. Sasank Reddy had agreed to make a minimum guarantee one-time payment of ₹2 crore for up to two lakh subscriptions. The former AGM also agreed for a revenue share after two lakh subscriptions, with 75% share to RGV Aarvi Group and 25% to APSFL. 

However, no authorisation letter was found in the records authorising Mr. Sasank Reddy to sign the agreement purportedly on behalf of APSFL binding it for such a huge financial commitment. Mr. Sasank Reddy and Mr. Madhusudhan Reddy had allegedly connived and released a payment of ₹1,14,96,610 including taxes to the RGV Aarvi group’s bank account, the notice said. 

The agreement was entered without the requisite assessment and recommendation of a technical committee of the APSFL on the amount to be paid. Mr. Ram Gopal Varma and Mr. Ravi Sankar Varma received the money on behalf of the RGV Aarvi Group in spite of not being entitled to it. The transaction amounted to cheating the APSFL and causing it financial loss to the tune of ₹1,14,96,610, the notice said. 

The actual amount realised for Vyuham Part-1 was only ₹1,86,225 from out of 1,845 subscriptions (views) and for the Part-2 of the movie ₹50,046 from out of 383 subscriptions, whereas Mr. Sasank Reddy and Mr. Madhusudhan Reddy made APSFL pay a total of ₹1,14,96,610 online with an apparent intention to cause a wrongful loss (to APSFL), the notice alleged. 

It was stated in the notice that the APSFL would take appropriate civil action and recourse to recover the amounts if it was not paid in the stipulated time, and that the aforesaid individuals and RGV Aarvi group were jointly and severally liable for the loss suffered by the APSFL.