Director Prasanth Varma has landed in a new controversy after HanuMan producer Niranjan Reddy accused him of mismanaging around 200 crore. Looks like a big legal battle is about to start between the two.

Both have filed complaints against each other with the Telugu Film Chamber, raising tensions in the industry. A legal battle may soon follow. Track Tollywood reviewed both complaint letters to understand the situation.  

Niranjan Reddy was the first to approach the Film Chamber. In his complaint, he stated that Prasanth Varma had agreed to direct four films for Prime Show Entertainment — Adhira, Mahankali, Jai Hanuman, and Brahma Rakshasa. Reddy claimed he paid Varma an advance of 10.34 crore for these projects.  

Prasanth Varma VS HanuMan Producer

According to Reddy, Varma also convinced him to produce another film titled *Octopus*, for which he paid an additional 10.23 crore. However, Reddy says he is still waiting for the NOC from the film’s original producer.  

Reddy further alleged that Varma later decided not to direct Adhira and Mahankali and instead brought in Vijay Binni and Pooja Kolluru as the new directors. Even after advances were given to the new directors, Varma reportedly announced those films again under RKD Studios.

Reddy also accused Varma of collaborating with other production houses, Mythri and Hombale, for Jai Hanuman and Brahma Rakshasa. He is now demanding a refund of 20.57 crore with 36% interest, as well as 200 crore in compensation for the business opportunities he lost because of these films.  

In response, Prasanth Varma submitted an explanation to the Telugu Film Directors’ Association. He clarified that he never agreed to direct Adhira or Mahankali and that no official contracts existed for those projects.  

He stated that he holds the IP rights for HanuMan, so Niranjan Reddy cannot claim ownership over Jai Hanuman under his banner. Varma also said there were no agreements regarding Brahma Rakshasa. He admitted receiving 15.82 crore for his work on HanuMan and one crore for the Adhira teaser.  

Varma confirmed that he received the payment for Octopus but said he handed that money over to the original producer. He claimed any issues related to the payment are between Reddy and that producer, not him.  

Varma explained that he owns all rights to HanuMan, except the Telugu theatrical, satellite, music, and digital rights. He also accused Reddy of forcing him to give up rights to other language releases, promising a 50% profit share in return.  

With HanuMan earning 295 crore worldwide, Varma said he is still waiting for his share. He insisted all his payments were only for HanuMan and accused Reddy of twisting facts and diverting funds from HanuMan to other projects like Darling, Sambarala Yeti Gattu, and Billa Ranga Baasha.  

The matter is currently pending, as the Film Chamber has yet to take action on either complaint.