Naagzilla Consultant Gets Interim Protection in Alleged ₹3.92 Crore Financial Irregularities Case
The Bombay High Court has granted interim protection from arrest to Kuldeep Singh Champawat, a consultant associated with the upcoming Kartik Aaryan film Naagzilla, in a case involving alleged financial irregularities of approximately ₹3.92 crore. The dispute concerns payments that were allegedly made without following a financial procedure agreed upon by Dharma Productions Private Limited and Mahaveer Jain Films Private Limited.
Justice Prafulla S. Khubalkar passed the order on November 3, 2026, while hearing Champawat’s anticipatory bail application. The case stems from a First Information Report (FIR) registered at Mumbai’s D.N. Nagar Police Station on September 26, 2026. The investigation remains ongoing, and the allegations have not been established in court.
What the complaint alleges
According to the complaint, payments totalling ₹3,92,76,308 were allegedly processed without complying with the Standard Operating Procedure, or SOP, agreed upon by the two production companies. Such procedures typically set out how production expenses should be documented, reviewed and approved, helping ensure that funds are used in line with a project’s financial controls.
The case has drawn attention because it involves companies connected to Naagzilla, a film starring Kartik Aaryan. However, the High Court’s order at this stage is specifically about Champawat’s request for anticipatory bail and the conditions attached to his interim protection. It does not determine whether the alleged financial irregularities occurred or who may ultimately be responsible.
Defence says consultant had no payment authority
Advocate Niteen Pradhan, appearing for Champawat, told the court that his client worked as a consultant and did not have the authority to approve or release payments. The defence also argued that financial decisions were handled by chartered accountants and that Champawat was not part of the designated payment-approval hierarchy.
After considering the submissions, the High Court noted that the payment structure described before it did not assign Champawat a specific role in authorising the transactions under scrutiny. The court also took into account that he had no criminal antecedents, a factor relevant to its consideration of his plea for protection while the investigation continues.
Conditions attached to the High Court’s order
The interim protection comes with conditions. Champawat has been directed to appear at the D.N. Nagar Police Station on November 12, 2026, between 10 a.m. and 2 p.m. He must cooperate with the investigators and provide relevant documents whenever the authorities request them.
These directions allow investigators to question him and seek information while providing temporary protection from arrest under the terms of the order. The court’s conditions do not bring the inquiry to a close: the police can continue examining the transactions, reviewing records and gathering statements as part of the investigation.
Why the case matters to Bollywood production practices
Film production involves a wide network of companies, executives, consultants, accountants and vendors. With budgets spread across locations, departments and stages of production, clear financial controls can be essential. An SOP may define who can authorise spending, what supporting documents are required and how payments should be recorded. When questions arise over whether those steps were followed, investigators may examine both the transactions and the responsibilities assigned to individuals involved in a project.
The allegations in this case highlight the importance of keeping approval roles clearly documented, particularly when several production entities are working together. A consultant’s involvement in a film does not, by itself, establish that the person had control over payments; the relevant question raised in court was whether Champawat held any formal authority within the approval process. That issue will be considered alongside other evidence as the inquiry proceeds.
For the Bollywood industry, the case is also a reminder that financial disputes connected to film projects can quickly become legal matters, with potential consequences for companies and individuals alike. At the same time, an FIR and allegations are not findings of guilt. The facts, the applicable agreements and the roles of the people involved remain subject to investigation and any further court proceedings.
Investigation continues
The Bombay High Court’s order offers Champawat interim relief while requiring him to remain available to investigators. The police probe into the alleged ₹3.92 crore in payments is continuing, and the court has not made a final determination on the merits of the case.
Naagzilla has therefore become the focus of a legal dispute extending beyond its Bollywood profile, raising questions about payment procedures and accountability in film production. The next steps will depend on the investigation’s findings and any further decisions by the courts.
