Lyca Productions accuses Ayngaran Films' K Karunamoorthy of financial fraud; urges police action
A letter by Lyca Productions alleges Karunamoorthy made massive profits for his Ayngaran company by misusing trust, siphoning of funds, and more
A long drawn financial dispute between Lyca Productions and Ayngaran International Films' Director Karunamoorthy K reached its crescendo with the former initiating legal proceedings against the latter. Lyca Productions has also sent a letter to the Commissioner of Police to investigate the various financial misdeeds that have happened over the six years of their business relationship.
In the letter, it is stated that the collaboration between Karunamoorthy and Lyca began on a good note in 2013 when they were financing Vijay-starrer Kaththi. Lyca had roped in the services of Karunamoorthy to impart his technical expertise and help them gain a foothold in the industry. The letter also reveals the influential presence of Banu, a close confidant of Karunamoorthy, who was privy to all the financial dealings. Lyca Productions Director Neelakant Narayanpur, in the letter, states Karunamoorthy was an important part of Lyca and took charge of approving scripts, and producing films. Apart from this, it is said in the letter that it was Karunamoorthy who decided the remunerations for artistes and technicians. It is also alleged that Karunamoorthy deputed Banu to take such decisions in his absence.
However, right from the time of Kaththi, the letter leads us to believe that Karunamoorthy started misusing the trust and made massive profits for his Ayngaran company by selling theatrical rights and overseas rights for various films produced by Lyca Productions, and siphoned off an estimate of Rs 90 crore. It is stated that the exact amount of loss for Lyca can only be determined by a thorough investigation. It is also alleged that a sum of Rs 13.3 crore has been falsified in the account statements of Lyca as money spent on overseas deals made by Karunamoorthy with his close relatives and friends.
In addition, it is alleged that Karunamoorthy, without Lyca's knowledge and concurrence, had entered into an agreement to bankroll Simbu-Sundar C's Vandha Rajaavathaan Varuven, which resulted in a loss of Rs 14 crore. Even Karunamoorthy's decision to produce Indian 2 under Lyca Productions resulted in a loss of Rs 4.35 crore due to shooting delays.
In the letter, Lyca Productions reasons that Karunamoorthy's highhandedness resulted in the company questioning him, checking the accounts, and finding out the various financial losses. It is also revealed that Karunamoorthy has given an undertaking that he would repay Rs 13,51,10,800 within a year for his involvement in the production of Indian 2 and Vandha Rajavaathan Varuven. However, it is alleged that Karunamoorthy remains non-committal over the Rs 90 crore loss due to the overseas and theatrical rights.
The letter also lists other financial disputes arising from Karunamoorthy's hotel expenses, cash advances, flight charges, payments made to a certain construction company, etc.
Lyca Productions also revealed that with the sacking of Karunamoorthy, fresh dealings have come to the fore, and the details of loot and misappropriation that came up before were just the tip of the iceberg.
The six-page letter ends with Lyca Productions requesting the police to investigate the financial misdeeds of Karunamoorthy and Banu, and help recover the sum owed by him, and his financial entity, Ayngaran International Films Pvt Ltd.
The impact of this fallout will be multifold, and also leads to doubts about the state of various Lyca Productions' films, including Indian 2, Darbar, and Sivakarthikeyan's film with Vignesh Shivan.