Mumbai Mirror

Mumbai, Sep 13: Raid follows reports that the companies had bagged distribution rights at a hefty price

The income tax department on Wednesday raided three film distribution companies — Eros International, Ashta Vinayak and K Sera Sera.

Sources in the department said that Eros International and Ashta Vinayak were raided following reports that they had bagged distribution rights of the Shah Rukh starrer Om Shanti Om after a huge payout.

Industry sources said Eros has bought the entire distribution rights including overseas territory of Om Shanti Om for a little over Rs 70 crore. Eros in turn sold the distribution rights in Mumbai to Ashta Vinayak for around Rs 10 crore.

A still from the film Om Shanti Om. Industry sources said Eros International has bought the distribution rights of the film for a little over Rs 70 crore and then sold the rights in Mumbai to Ashta Vinayak for around Rs 10 cr

When contacted Vicky Rajani, head of Eros International India, confirmed that the raid had happened. “There was a raid this morning but we’re not the only ones raided,” Rajani said, adding, “They couldn’t find anything here.” He refused to say any more on the issue.

Other company heads had switched off their mobile phones.

A spokesperson for Ashta Vinayak confirmed the raid but refused to divulge any details, saying, “I have no idea about it as I am out of town.”

Eros is headed by Vijay Ahuja, an NRI based in London and his cousin Ashok Gobindram Lulla.

It is learnt that the group picked up a controlling stake in Ayangaran International Ltd, producer of the Tamil version of Guru starring Abhishek Bachchan, at $33 million (Rs 133 crore).

The raid on K Sera Sera is linked to the huge success of its latest movie Partner starring Salman Khan and Govinda. Azam Khan and Sanghvi of the K Sera Sera group were also raided.

Producer-director Sanjay Gupta’s White Feather Films has signed a 250-crore plus deal with Eros for co-production, marketing and distribution.

Hansal Mehta, the COO of White Feather, said, “Unfortunately, I cannot comment on this subject currently. Only after all procedures are cleared from the government’s side will we be in a  position to understand the nature of the procedure taken up and officially comment. We are law-abiding and responsible people.”