Director Prasanth Varma who shot to fame with the blockbuster film HanuMan has found himself in the middle of a serious financial dispute. Producer K. Niranjan Reddy claims he paid more than ₹20 crore in advances for multiple projects that never took off. What is the matter? These projects titled Adhira Mahakali Jai HanuMan and Brahma Rakshasa were allegedly promised under the banner of Reddy’s Prime Show Entertainment. The director reportedly backed out or handed over direction to others while he re‑announced the same titles with different studios. Now the dispute has been taken up by the Telugu Film Chamber of Commerce and Telugu Film Directors’ Association for resolution. What is the dispute? According to sources Niranjan Reddy alleged he paid over Rs 10 crore initially covering a cluster of films that were to be directed by Prasanth Varma. When those films stalled or were taken elsewhere Reddy claims his company suffered financial losses and reputational damage. His complaint asks for the return of Rs 20.57 crore with 36 % interest plus compensation of up to Rs 200 crore for the lost business opportunities. In addition several other production houses including DVV Entertainment have clarified they have no deal with Prasanth Varma. DVV directly refuted the rumors of their alleged involvement calling the reports “false and baseless”. Prasanth Varma’s response Prasanth has publicly denied the claims describing them as “false baseless and retaliatory.” He acknowledged receiving specific amounts: Rs 15.82 crore for HanuMan Rs 1 crore for the teaser of Adhira and Rs 8.18 crore for Octopus which he says was passed on to another producer. However he stressed he never directed some of the alleged films and never signed formal contracts for them. He argues the producer is now filing complaints to avoid meeting his own obligations for example profit‑sharing deals he made. Prasanth also emphasised that the matter is sub‑judice and under review by the industry bodies urging the media and public to refrain from drawing conclusions before a formal decision emerges. Story Highlights Producer K. Niranjan Reddy alleges Prasanth Varma took advances exceeding Rs 20 crore for films that never materialised. Prasanth Varma labels the allegations as “false and retaliatory” admitting only select payments tied to specific films. Industry banner DVV Entertainment and others have denied any deal with Prasanth Varma adding complexity. The case is under review by industry bodies the Telugu Film Chamber and the Directors’ Association. The feud between director Prasanth Varma and producer K. Niranjan Reddy is more than just a personal dispute it’s a reflection of the fragile transaction dynamics in the film industry.