Mumbai EOW Summons Execs Of Netflix-Linked Entity For Allegedly Cheating Bollywood Producer

Mumbai Police’s economic offences wing (EoW) has reportedly summoned executives of a Netflix India entity, Los Gatos Production Services India, on a complaint filed by Bollywood film producer Vashu Bhagnani.

It is pertinent to note that Los Gatos Production Services India is the entity through which Netflix reports its content investments in India. As per ET, Bhagnani has hurled allegations of cheating and conspiracy against the company linked to Netflix and 12 others. 

He has further accused the streaming major of not honouring its payment obligations after the completion and release of films produced by his production company Pooja Entertainment. 

Bhagnani claims that he is yet to receive dues worth INR 47.37 Cr pertaining to the subscription-video-on-demand (SVOD) rights he had granted on three films (Hero No 1, Mission Raniganj and Bade Miya Chote Miya) to Netflix. 

Besides Los Gatos Production Services, he has also named Zoo Digital India, which provides subtitling, dubbing and media localisation services, as well as 10 executives of the two companies as accused in the complaint.

As per the report, the producer also alleges that his company Pooja Entertainment was “coerced into revisiting the commercial terms” of the rights deal and “induced” to deliver one of the movies to Zoo Digital India. He went on to allege that Zoo Digital India allegedly then leaked the film even before the theatrical release, which caused him a “financial and reputation loss”.

Meanwhile, Netflix India in a statement to ET denied the allegations and termed them “unfounded”.

“These claims are completely unfounded. Indeed, it’s Pooja Entertainment that owes Netflix money… We have a strong track record of partnership with the Indian creative community and are working with the authorities to resolve this dispute,” a Netflix spokesperson said reportedly.

Meanwhile,responding to the complaint, the EOW of the Mumbai Police has commenced a preliminary enquiry into the matter and has summoned the executives. 

“During the course of the enquiry, officials linked to the firm were summoned and they have joined the investigation… Once the enquiry is completed, based on its findings a call will be taken whether or not to convert the PE into a first information report,” a police official reportedly added. 

As per the complaint, a content licence agreement was reportedly signed between Pooja Entertainment and Los Gatos Production Services in 2021 for the SVOD rights of three films. Under this, Pooja Entertainment was to foot a bill of INR 645 Cr towards the production and publicity of the films while the Netflix entity was to pay Bhagnani’s firm an amount of INR 281 Cr. It is this issue that appears to have created the latest set of issues at Netflix India.

The latest trouble comes at a time when the streaming major has been in the eye of a storm. Earlier this month, news agency Asia News International (ANI) sued Netflix and producers of the show “Watch IC 814: The Kandahar Hijack” over alleged copyright and trademark infringement.

Netflix also faced backlash online over the webseries, which purportedly deviated from the original incident upon which the series ‘IC 814’ is based on. Subsequently, the company was summoned by the Ministry of Information and Broadcasting (I&B) and asked to explain its stance. 

Afterwards, the OTT platform reportedly assured the government of keeping its content in accordance with “nation’s sentiments” in the future. 

Meanwhile, just days ago, reports surfaced that the Indian authorities were probing the business practices of the OTT platform in the country, including allegations of visa violations and racial discrimination.

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