Recently the film industry had witnessed a huge shock as director Bala's version of Dhruv's debut Varmaa was scrapped and the production house E4 entertainment which was unhappy with Bala's version had announced that a new version will be made with a new director targeting a June release.

Now director Bala has made an official press release stating that it was his personal decision to relieve himself from the project for creative freedom and not as said by the producer falsely. He had also attached the termination agreement signed between the producers and Bala's B studios on January 22 itself. Bala had expressed that he doesn't wish to speak further on this issue considering Dhruv's future.

As per the agreement, though B studios were given liberty to make changes to Arjun Reddy screenplay, the final output of Varmaa was not liked by the producer, and as Bala was not ready to make changes, E4 entertainment can make the required changes to an existing version. The agreement also mentioned waiving off balance payment by E4 to B studios and mentioned that B studios will make payment to Anand cine services, issuing a no due/ no lien certificate favoring E4 entertainment. As requested by E4 entertainment, B studios have handed over footage, stills, soundtracks, IT tracks, unmixed and mixed songs and tracks. E4 can further modify the existing version, with the condition that they must not use Bala's name anywhere in the project.