The legal controversy surrounding Kartik Aaryan's upcoming film Naagzilla has taken a new turn, with the Bombay High Court granting interim protection to film consultant Kuldeep Singh Champawat in an alleged financial irregularity case involving approximately ₹3.92 crore. The matter concerns financial transactions between Dharma Productions Private Limited and Mahaveer Jain Films Private Limited, the production companies associated with the film.
The High Court's order offers temporary relief to Champawat while his anticipatory bail plea is being considered. The court also directed him to appear before the investigating authorities and cooperate with the ongoing investigation. The case revolves around allegations that payments amounting to ₹3,92,76,308 were made without following the financial procedures agreed upon by the two production houses.
Why Did the Bombay High Court Grant Relief?
The Bombay High Court passed the order on November 3, 2026, while hearing the anticipatory bail application filed by Kuldeep Singh Champawat. Justice Prafulla S. Khubalkar considered the arguments presented by the consultant's legal team.
Advocate Niteen Pradhan, appearing for Champawat, argued that his client's role was limited to providing consultancy services. According to the defence, Champawat did not have the authority to approve or release payments and was not part of the official financial approval hierarchy.
The lawyer further submitted that financial decisions were handled by chartered accountants and that the consultant did not have direct control over the payment process.
After considering these submissions, the High Court noted that the payment approval structure did not assign Champawat any specific responsibility for authorising the disputed transactions. The court also took note of the fact that he had no previous criminal record.
These considerations formed part of the basis for granting him interim protection. However, the order does not amount to a final decision on the allegations or a conclusion that the consultant has been cleared of wrongdoing.
What Is the ₹3.92 Crore Financial Irregularity Case?
The controversy relates to an alleged violation of the Standard Operating Procedure (SOP) agreed upon between Dharma Productions Private Limited and Mahaveer Jain Films Private Limited.
According to the complaint, payments worth ₹3,92,76,308 were allegedly made without following the financial procedures specified in the agreement between the two production companies.
An FIR was registered at Mumbai's D.N. Nagar Police Station on September 26, 2026. The case involves allegations of cheating, criminal breach of trust and forgery in connection with the disputed financial transactions.
The investigation is focused on understanding how the money was handled, whether the agreed financial procedures were followed and what responsibilities different individuals involved in the film's production may have had.
It is important to note that these are allegations under investigation. The registration of an FIR does not establish the guilt of any individual, and the legal process will determine the responsibility of those named in the case.
Court Directs Consultant to Join Police Investigation
While granting interim protection, the Bombay High Court directed Champawat to appear at the D.N. Nagar Police Station on November 12, 2026, between 10 am and 2 pm.
The court also instructed him to cooperate with the investigation and provide relevant documents whenever required by the investigating authorities.
These conditions are significant because the relief is linked to his cooperation with the police. The investigating agency will continue examining the financial transactions and the roles of the people connected with them.
The court's direction should not be interpreted as the closure of the case. The investigation into the alleged financial irregularities remains ongoing, and further legal developments may follow.
Earlier Court Had Rejected Anticipatory Bail Pleas
The latest High Court development comes after an earlier setback for other individuals connected with the same case.
On October 29, 2026, a Dindoshi sessions court rejected the anticipatory bail applications of consultant Kuldeep Singh Champawat, line producer Shivkumar Tiwari and executive producer Mahipal Rathore.
The sessions court had observed that the alleged use of ₹3.92 crore without proper accounting involved a substantial amount of money and required detailed investigation. It also considered custodial interrogation necessary for examining the financial transactions.
The Bombay High Court's subsequent interim protection to Champawat represents a separate development in his legal proceedings. It is important to distinguish this temporary relief from a final anticipatory bail decision or an acquittal.
What Does the Case Mean for Kartik Aaryan's Naagzilla?
Naagzilla, starring Kartik Aaryan, is among the upcoming projects generating interest among Bollywood audiences. The film's association with major production houses has brought additional attention to the financial dispute.
However, the current legal proceedings concern alleged financial irregularities and the implementation of payment procedures between the production companies. The court's order specifically relates to Champawat's anticipatory bail application and the conditions attached to his interim protection.
The controversy has once again highlighted the importance of transparent financial management, clearly defined responsibilities and proper documentation in film production.
For now, the investigation remains underway. The November 12 appearance of Kuldeep Singh Champawat before the police is an important next step in the proceedings, while the allegations surrounding the ₹3.92 crore transactions await further examination by the investigating authorities and the courts.
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