A BizAndhra Special Report
Chennai/Hyderabad: The release of Akhanda 2, one of Tollywood’s most awaited sequels, has been halted after the Madras High Court issued an injunction preventing any theatrical release, OTT streaming, or commercial exploitation of the film. The order came in response to a petition filed by Eros International Media Ltd., which claims the producers owe it nearly ₹28 crore, stemming from a long-pending financial dispute dating back more than a decade.
The ruling forced last-minute cancellation of premiere shows and halted all release plans, triggering disappointment among Nandamuri Balakrishna fans and creating uncertainty for distributors.
The Debt Trail: How a Dookudu Deal Led to Akhanda 2’s Legal Freeze
The heart of the dispute is not related to Akhanda 2 itself but a financial settlement arising from the 2011 Mahesh Babu film Dookudu.
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Eros International and 14 Reels Entertainment Pvt. Ltd. had an agreement during Dookudu’s release involving rights and financial commitments.
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In 2019, an arbitral tribunal ruled in favour of Eros, ordering 14 Reels to pay ₹11.23 crore plus interest and hand over certain title documents.
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The producers challenged the award across courts—including the Supreme Court—but every challenge was dismissed, making the arbitral award final and enforceable.
Eros alleges that instead of honouring this award, the same group of producers began operating through a new entity—14 Reels Plus LLP, the banner behind Akhanda 2—in an attempt to evade payment. 14 Reels Entertainment was founded by brothers Ram Achanta, Gopichand Achanta and Anil Sunkara. 14 Reels is a Telugu film production and distribution company. Eros International is a Mumbai-based movie production company.
The High Court accepted the argument that releasing Akhanda 2 under a related entity would “frustrate enforcement of the award,” and therefore barred the film’s release until the entire dues with interest are cleared (now approximately ₹27.7–28 crore).
Court Order: No Release, No Streaming, No Promotions
The injunction explicitly prevents:
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Theatrical release
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Premiere or benefit shows
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OTT or satellite streaming
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Promotional exploitation of the film
The makers issued a brief statement acknowledging the court order and promising updates, but offered no clarity on when the issue would be resolved.
Producers’ Options Now
Legal experts say the producers have three narrow paths:
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Pay Eros International the full arbitral award, clearing the way for the court to lift the injunction.
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Negotiate an out-of-court settlement, reducing immediate cash liability.
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Appeal the injunction, though courts rarely show leniency when a final arbitral award remains unpaid.
Until one of these happens, Akhanda 2 cannot legally move forward.
Akhanda Franchise Impact
Akhanda remains one of Balakrishna’s biggest hits, with his Aghora character achieving cult status. The sequel—with Boyapati Sreenu returning as director—was expected to open strongly at the box office.
But the legal freeze puts the sequel’s timeline in jeopardy and may impact non-theatrical deals, including satellite rights and OTT negotiations.
Another Angle: Sequel Rights Concerns
Separately, industry circles have discussed whether story and character rights for a sequel legally vest with the director or the original producer. Although this issue has not resulted in formal litigation yet, it remains a secondary cloud around the project. While Akhanda was produced by Miryala Ravinder Reddy under Dwaraka Creations, the sequel was made by 14 Reels with the same director Boyapati Sreenu.
Industry View: A Warning to Big Producers
The case highlights a broader lesson for Tollywood:
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Unsettled financial obligations from old projects can disrupt new high-value releases.
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Courts are increasingly willing to enforce arbitral awards by freezing film releases.
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Corporate structuring (moving between banners) will not protect producers from past liabilities.
What began as a blockbuster sequel rollout has now turned into a major legal crisis. Until the dues linked to a decade-old Dookudu agreement are settled, Akhanda 2 will remain locked inside court orders—its release date uncertain, its business prospects paused, and its producers under financial pressure.