From Dookudu to Akhanda 2: Timeline of the EROS–14 Reels Financial Battle

The long-standing financial dispute between EROS International and 14 Reels Entertainment has once again come into the spotlight with the delay of Akhanda 2. To understand why this issue resurfaced now, it’s important to trace the history of their financial partnership and the series of events that led to the current situation.

The relationship began on a positive note when 14 Reels financed Mahesh Babu’s blockbuster Dookudu. The film’s massive success strengthened the banner’s standing in the industry. However, things took a drastic turn soon after.

EROS later stepped in to finance Mahesh Babu’s 1 Nenokkadine, a film that unfortunately ended as a major box-office failure. Following the loss, 14 Reels owed EROS a substantial amount, and to recover part of the deficit, both companies collaborated again for Aagadu. Despite riding on the huge craze generated by the Dookudu combination, Aagadu too ended up disappointing, deepening the financial strain.

Understanding the situation, Mahesh Babu himself intervened to support 14 Reels. He promised a film to EROS to help them recover their investment, and he fulfilled that commitment by giving EROS the distribution rights of Srimanthudu a massive blockbuster. Even after this success, a portion of the dues remained unsettled.

To resolve the matter, EROS and 14 Reels entered into a financial settlement for repayment between 2015 and 2019. EROS waited the entire period, but when the amount wasn’t cleared, the agreement stipulated that a 14% annual interest would be applied starting July 2019. Over the years, this interest reportedly grew into a significant financial burden.

EROS did not interfere with Sarkaru Vaari Paata (SVP), as the film involved Mythri Movie Makers and Mahesh Babu’s own GMB banner especially since Mahesh had already helped them once in 2015. However, with Akhanda 2 now positioned as a high-value release, EROS sees it as a crucial opportunity to recover the long-pending dues.

As negotiations continue, the industry waits for a clear resolution so that the Akhanda 2: Thaandavam can proceed toward release without further hurdles.