Karan Johar and Kartik Aaryan’s Naagzilla faces a legal setback as a Mumbai sessions court denies anticipatory bail to three production executives in an alleged Rs 3.92 crore fund misappropriation case.
Published: October 30, 2026, 1:49 PM IST
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Mumbai court denies anticipatory bail In Naagzilla Rs 3.92 crore case (PC: Instagram)
Karan Johar and Kartik Aaryan’s upcoming film Naagzilla has landed in legal trouble even before its theatrical releaseA financial irregularities case linked to the film’s production has come into focus after three production executives approached a Mumbai court seeking anticipatory bailThe matter concerns an alleged misappropriation of funds worth more than Rs 3.92 crore during the film’s makingHowever, the court has refused to grant them pre-arrest protection, observing that a detailed investigation is requiredThe development has brought fresh attention to the film, which is being produced under Dharma Productions and Mahaveer Jain Films.
Mumbai court denies anticipatory bail In Naagzilla Rs 3.92 crore case
A sessions court in Mumbai has rejected the anticipatory bail applications of three film production executives accused of allegedly misappropriating Rs 3,92,76,308 during the production of Naagzilla.
According to PTI, Additional Sessions Judge M Mohiuddin of the Dindoshi court passed separate orders on October 28, 2026 (Wednesday)The court observed that there was prima facie material indicating the involvement of the three applicants in the alleged offence.
The judge also said that their custodial interrogation was necessary for a detailed investigation into the matterThe three executives are consultant and signing authority Kuldeep Singh Champawat (47), line producer Shivkumar Tiwari (45), and service provider and executive producer Mahipal Karan Rathore (42).
The case began after Tukaram Mahadev Sawant, an accountant with Mahaveer Jain Films Pvt Ltd, filed a complaint.
What are the allegations in Naagzilla fund misappropriation case?
According to the prosecution, the three executives allegedly worked together to bypass the company’s Standard Operating Procedure (SOP) and incurred unaccounted expenditure of Rs 3,92,76,308 without submitting the required bills, receipts, and vouchers.
The complaint further alleged that a vendor’s bill was inflated from Rs 85,000 to Rs 1.30 lakhThe accused were also alleged to have made a payment of Rs 45,000 to a firm named ANM Global, which reportedly did not provide any services for the film.
Apart from this, the police informed the court that bills worth more than Rs 1.50 lakh were allegedly fabricated in coordination with a production assistantThe investigating officer also claimed that the executives collected commissions and mobile phones from vendors in exchange for awarding work and clearing their bills.
About Naagzilla
Naagzilla is an upcoming supernatural fantasy comedy starring Kartik Aaryan in the lead roleThe actor will reportedly portray an ichchadhari naag in the film. IMDb states, “The first chapter in a high-concept creature comedy trilogy, where ancient serpentine legends intertwine with modern chaos, a mystical being emerges from Naag Lok to confront an unprecedented threat, marking the beginning of an epic saga.” The movie is scheduled to release in 2027.
Directed by Mrighdeep Singh Lamba and written by Gautam Mehra, the project is backed by Karan Johar’s Dharma Productions and Mahaveer Jain FilmsThe film also features a production team that includes Adar Poonawalla, Apoorva Mehta, Mrighdeep Singh Lamba, and Neetu M Jain.
The film has generated interest among audiences, given Kartik’s association with the fantasy genre and his collaboration with Karan Johar.
