Business - AB Corp calls off Rs15 billion deal with Reliance

Reliance BIG Entertainment's mega deal of Rs 15 billion with Amitabh Bachchan's AB Corp has fizzled out. The two companies had entered into a contract in June 2008 to make feature films and TV serials. The first couple of films that the companies had finalised were ‘Pa’, directed by Balki and Dr. Chandraprakash Dwivedi's ‘Kunal Avadana’.

Our source from the industry reveals, “Reliance has been going through a major up and down for some time now. Most of the filmmakers making films with Reliance have been asked to cut costs. Some of the films that Reliance is producing have been asked to rework on their budget, while price of some of the films they are distributing have also been reduced. Most of the films like Vashu Bhagnani's ‘Do Knot Disturb’ and ‘Kal Kissne Dekha’, Ravi Chopra's ‘Banda Yeh Bindaas Hai’ and many others have to be reconsidered by Reliance.

“After the deal with Reliance fizzled out, AB Corp is all set to join hands with Studio 18 to make Balki’s ‘Pa’ with them. The deal with ‘Pa’ is almost done while talks are also on for ‘Kunal Avadana’.”

Another source elaborates, “The deal between AB Corp and Reliance has fallen through as Reliance was taking its own time and there was no clarity from their side as to when they wanted to start the film.”

When contacted, the official spokesperson of Reliance said they did not wish to comment. However, Sandeep Bhargav of Indian Films (TV 18) says, “It is too premature to discuss anything.”

Amitabh Bachchan remained unavailable for comment.