We had reported earlier that the 'Sarkar' story controversy issue has been resolved out of court today and from initial reports director A.R. Murugadoss has agreed to give thanks card story credit to Varun Rajendran and other financial compensation has also been provided. The exact picture will emerge once the press meet happens later this evening.

Meanwhile, in an interview, K. Bhagyaraj has stated that he called Vijay and expressed his delicate position in the 'Sarkar' issue but the Thalapathy put the senior at ease immediately telling him he respects his position as the head of Writers Union. Vijay had then told Bhagyaraj that since Murugadoss has decided to fight the issue in court let him proceed and also requested Bhagyaraj to deal the matter according to rules and regulations of the union.

Earlier Bhagyaraj had also said in our own interview that his son Shantanu Bhagyaraj being a hardcore Thalapathy Vijay fan was very much upset with him for taking the 'Sarkar' matter in his hands.