Details of the Compensation and Dispute
YRF plans to refund ₹22 crore to Naga Vamsi and his partners through structured settlements across key Telugu regions: ₹10 crore for Nizam, ₹7 crore for Andhra, and ₹5 crore for the Ceded region.
The Telugu dubbed version of War 2, starring Hrithik Roshan and Jr NTR, underperformed with collections around ₹52 crore net in the region and dwindling daily earnings.
The film’s poor reception was attributed to mixed to average reviews, audience backlash, and strong competition, notably from Rajinikanth’s Coolie.
Naga Vamsi faced online trolling and criticism post-release but has vowed to continue producing films.
Industry Implications and Risk Sharing Debate
The compensation by YRF has ignited discussions within Bollywood about risk-sharing mechanisms in film production and distribution.
The episode highlights the financial vulnerabilities borne by regional distributors when major pan-India projects underperform.
Stakeholders are debating more balanced contractual frameworks to mitigate losses and ensure fair risk distribution between production houses and distributors.
Key Facts
Compensation Amount: ₹22 crore to Naga Vamsi and partners
Purchase Cost of Telugu Rights: ~₹80 crore
Telugu Version Performance: ₹52 crore net (underwhelming)
Regions for Compensation: Nizam, Andhra, Ceded
Bollywood Film: War 2 starring Hrithik Roshan and Jr NTR
Chief Competitor at Box Office: Rajinikanth’s Coolie
YRF’s decision to compensate for losses raises important debates about financial risk management in Bollywood, especially for big-budget projects with multi-regional versions.