Naagzilla: Court Denies Anticipatory Bail To 3 Accused For Alleged Misappropriation Of Funds In Kartik Aaryan's Film

Kartik Aaryan's Naagzilla, directed by Mrighdeep Singh Lamba and backed by Karan Johar’s Dharma Productions and Mahaveer Jain Films, will debut in cinemas next year. Kartik is playing an Ichadhari Naag (shape-shifting serpent) in the fantasy film.

A Mumbai sessions court has denied anticipatory bail to three film production executives accused of misappropriating more than ₹3.92 crore during the making of the film, PTI reported.

Court denies bail in Naagzilla fund misappropriation

On Wednesday (October 28), M Mohiuddin, Additional Sessions Judge of the Dindoshi court ruled that there was prima facie material against them about their involvement in the offence. The court ruled that detailed investigation into the matter required the accused to be interrogated in custody.

Who are the accused in the Naagzilla case?

The three accused are consultant and signing authority Kuldeep Singh Champawat (47), service provider and executive producer Mahipal Karan Rathore (42), and line producer Shivkumar Tiwari (45).

The PTI report also mentioned that Tukaram Mahadev Sawant, an accountant with Mahaveer Jain Films Pvt. Ltd., lodged an FIR.

Mahaveer Jain Films and Dharma Productions Pvt. Ltd. entered into an agreement to produce Naagzilla with a reported budget of ₹82.50 crore on October 30 last year. According to the complaint, Kuldeep Singh Champawat approached Mahaveer Jain to handle the film's production and recommended his relative, Rathore, who was appointed as a service provider. Tiwari was hired as the line producer to onboard vendors for vehicles, makeup, and junior artistes.

All we know about Naagzilla fund misappropriation case

According to the prosecution, the trio conspired to bypass Standard Operating Procedures (SOPs), resulting in ₹3,92,76,308 in unaccounted expenses without supporting bills or vouchers.

The complaint also claimed that the accused inflated a vendor’s invoice from ₹85,000 to ₹1.30 lakh, disbursing ₹45,000 to ANM Global for services never rendered, and clearing over ₹1.50 lakh in fake bills generated alongside a production assistant.

The investigating officer informed the court that the accused extracted commissions and mobile handsets from vendors to secure work contracts and clear bills.

Naagzilla release date

Naagzilla, which was set to arrive in cinemas on August 14, 2026, will hit theatres on February 12, 2027.