07 June,2023 07:35 AM IST | Mumbai | Mohar Basu
A still of Kartik Aaryan and Kriti Sanon from the movie. Pic/Internet
On its February release, Kartik Aaryan and Kriti Sanon's Shehzada couldn't work its charm at the box office. Almost four months on, many associated with Rohit Dhawan's directorial venture seem to be feeling the pinch. mid-day has learnt that many vendors across departments are awaiting their dues, with the cumulative figure said to be over Rs 30 lakh.
With payments made in tranches, the industry norm is to clear dues within 60 to 90 days of the release. A senior crew member from Shehzada's direction team, on the condition of anonymity, says, "Producers need to understand that prolonged non-payment can lead to a breakdown in trust. I may become reluctant to collaborate with them on future projects."
The issue highlights the on-ground implications of the cash crunch that Bollywood has witnessed since 2022. With only a handful of films having worked at the box office over the past two years, the industry has seen a significant drop in revenue and cash inflow. A character actor says the film's producers have promised to make the final payment next week. "I have been told they are awaiting a chunk of subsidy from an overseas shoot. Once that is in, we will be paid. It's crucial for stakeholders to prioritise timely payments. If payments are expected within 60 to 90 days, they should stick to it."
When budgets are tight, filmmakers resort to cost-cutting measures, prioritising payments in order of hierarchy. The resultant delayed payments affect the industry's ecosystem. Another vendor says, "We rely on timely payments to sustain our businesses. The delayed payments can hamper operations. I've already paid my team, but I'm awaiting dues of more than R20 lakh from the producers."
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Allu Entertainment, the production house backing the film, issued a statement that read, "We have settled all the vendors' dues except a few disputed bills [that have] discrepancies, and in others, there are certain GST issues."