A Mumbai court has refused to grant pre-arrest bail to three production executives linked to Kartik Aaryan’s upcoming film Naagzilla, in a case alleging that Rs 3.92 crore of the film’s production money was spent without proper bills or vouchers. The order is a serious setback for the three men, because it means they can now be taken into custody for questioning as the police investigation continues.
The case has drawn attention well beyond the film trade because of the names attached to it. Naagzilla, whose full title is Naagzilla: Naag Lok Ka Pehla Kaand, is a co-production of Karan Johar’s Dharma Productions and Mahaveer Jain Films. It stars Kartik Aaryan in the lead role and is due in cinemas in 2027. The criminal case itself, however, is not about the actors or the story on screen. It is about how production money was handled behind the scenes.
What the court decided
Additional Sessions Judge M Mohiuddin, sitting at the Dindoshi court in Mumbai, passed separate orders on October 28 refusing anticipatory bail to all three applicants. According to reports of the orders, the judge found prima facie material indicating their involvement in the alleged offence and held that their custodial interrogation was necessary for a detailed investigation into the financial transactions.
In plain terms, anticipatory bail would have protected the three men from arrest if the police wanted to take them into custody. By refusing it, the court accepted the prosecution argument that the investigators still need to question them in custody to trace where the money went. The court also noted that the possibility of evidence being tampered with could not be ruled out at this stage.
It is important to be clear about what this order does and does not mean. A refusal of anticipatory bail is not a conviction. The three men remain accused, not convicted, and the allegations against them are still to be tested in the full trial process. What the court has decided for now is that the investigation needs custodial questioning, not that guilt has been proved.
Who are the three accused?
The three men whose pleas were rejected are:
- Kuldeep Singh Champawat, 47: consultant and signing authority on the production.
- Mahipal Karan Rathore, 42: service provider and executive producer.
- Shivkumar Tiwari, 45: line producer.
The complaint was filed by Tukaram Mahadev Sawant, an accountant with Mahaveer Jain Films. The case was registered at the D N Nagar police station in Mumbai, and the men face allegations including cheating, criminal breach of trust and forgery. Those charges relate to the handling of production funds, and the police case is built around an internal audit that flagged the spending.
How the alleged diversion worked
According to the prosecution case reported by multiple outlets, Mahaveer Jain Films entered into an agreement with Dharma Productions on October 30, 2025, to produce Naagzilla with a total budget of Rs 82.50 crore. A separate bank account was opened for the film’s production.
The prosecution alleges that the three accused, acting together, bypassed the production company’s standard operating procedures and incurred unaccounted expenditure of Rs 3,92,76,308, roughly Rs 3.92 crore, without submitting the required bills, receipts and vouchers. Reports of the police complaint also mention padded vendor claims and payments cleared for work that was not properly documented, which is why investigators want to follow the money trail in detail.
That figure is small next to the film’s overall Rs 82.50 crore budget, but the court treated it seriously. The judge described it as huge money in a financial transaction case and said custodial interrogation was needed to understand the full scope of the transactions.
What happens next for Naagzilla?
For now, the film itself is not the subject of the court order, and there is no suggestion in the reports that the release plan has changed because of this case. Naagzilla is directed by Mrighdeep Singh Lamba and is presented as a supernatural fantasy comedy. The production companies have already taken legal action over the alleged irregularities, which suggests they want the money trail established rather than buried.
The next steps will be driven by the investigation. The police can now seek custody of the three accused for questioning, and the case will move toward a chargesheet once investigators say they have traced the transactions.
FAQs
What is the Naagzilla case about?
It is an alleged misappropriation of Rs 3.92 crore during the production of Kartik Aaryan’s film Naagzilla, with the money said to have been spent without proper bills or vouchers.
Who was denied bail?
Consultant Kuldeep Singh Champawat, executive producer Mahipal Karan Rathore and line producer Shivkumar Tiwari. A Mumbai sessions court rejected their anticipatory bail pleas.
Which court heard the case?
The Dindoshi sessions court in Mumbai, where Additional Sessions Judge M Mohiuddin passed the orders on October 28.
Have the accused been convicted?
No. The bail refusal is not a conviction. The allegations are still under investigation and remain to be proved at trial.
When is Naagzilla releasing?
The film, co-produced by Dharma Productions and Mahaveer Jain Films and directed by Mrighdeep Singh Lamba, is due in cinemas in 2027.
The investigation continues, and further developments in the case are expected as the police complete their inquiries into the production accounts.
