Update: We’ve received the following statement from Rajjat Barjatya, MD and CEO of Rajshri Entertainment: “The notice has been received by our group company Rajshri Media and not by Rajshri Entertainment. The allegations are factually incorrect, malicious and deceitful. Our legal team is in the process of sending them an appropriate response for their baseless allegations, which will hopefully set the matter to rest.”
Earlier: Emergic Venture Capital, an investor in Rajshri Media, has reportedly sent a legal notice for winding up the company for alleged non-payment of a loan, reports Mumbai Mirror. Apparently, EVC had loaned Rs 5.7 crore to Rajshri Media between May 2007 and May 2010, which was supposed to be paid back within 3 years with 6% annual interest.
The outstanding loan amount, it seems, currently stands at Rs 9 crore of which Rajshri has only paid Rs 30 lakh till date, and has failed to reply to mails sent by EVC in November and December 2014. The legal notice also alleges that while Rajshri has failed to pay EVC, it has continued to make payments to Rajshri’s associate companies like Rajshri Films Pvt Ltd, Rajshri Productions Private Limited and Sargam Pictures Pvt Ltd. Note that EVC holds a 50% stake in Rajshri Entertainment, which it acquired for Rs 5 crore.
We’ve written to Rajshri Entertainment CEO & managing director Rajjat Barjatya, and will update once we hear back. Barjatya told Mumbai Mirror that the allegations are baseless and that their lawyers are currently studying the notice.
Emergic Venture Capital is IndiaWorld founder Rajesh Jain’s venture fund. It has also invested in mobile apps maker Mobifusion, mobile payments company mCheck, and OneIndia.com parent Greynium among others, besides Rajshri Entertainment.
Will Rajshri’s global push stay on track?
This development comes at a time when Rajshri Entertainment has been making a concerted effort to reach a more global audience. It had signed up with Believe Digital for distributing and marketing Rajshri’s music catalogue across various International digital platforms like iTunes, Spotify, Pandora, eMusic and others, last year.
At the time, Barjatya had told MediaNama that ” we’re thinking a little differently in terms of taking our content to an audience beyond the Indian diaspora. We want to produce globally relevant content from India. My Japanese language channel on Indian food (Indono Daidokoro) is a step in that direction too. We feel that when you have platforms like YouTube and iTunes, which reach out to audiences across the world, you have to produce music that lends itself to reaching out worldwide.”
Corrigendum: We had incorrectly mentioned that the legal notice has been sent to Rajshri Entertainment. It has in fact been sent to Rajshri Media, and the headline and article has been edited to reflect the same.