Well, this is BIG news indeed: it appears that Reliance Entertainment’s fund-raising and valuation-building efforts have hit a road block. ET reports that though the deal isn’t done yet, though it hasn’t fallen through either: term sheets were signed in March, but valuation and “other issues” are holding back investment. Both Reliance and Soros’ representatives have declined to comment. More details on why the deal is not yet done at ET. We’re trying to contact Reliance Entertainment President Rajesh Sawhney for a confirmation.

Readers will remember that Reliance Entertainment had announced an investment of $100 million for just a 3 percent stake, valuing the company at around $3 Billion. Note that Reliance Entertainment comprises of BIG Movies, BIG Music, and digital ventures BIG Animation, Zapak (online gaming), Jump Games (mobile gaming), BIG Flix (online streaming, offline video rental) and BIG Adda (social networking). Of these, substantial investment plans have been announced for Zapak and BigAdda, and JumpGames has paid, reportedly, over $50 million for its deal with Manchester United.

Do note that Soros was among the seven investors who put in $14 Billion Rs. 14 Billion in Reliance Telecom Infrastructure Ltd.