Kavithalaya, a production company owned by the late director, K. Balachander refuted reports that the filmmaker’s house and his production company will be auctioned by the bank to recover unpaid loan.
A press release put out by the company stated that such news reports and rumours are baseless and are from unverified sources. It said that the filmmaker’s house and office properties have not been pledged or sold or put for auction.
The statement explains that the late director once claimed a loan from UCO bank under the given securities of a personal property owned by his family member. This was for normal business activities and the company has returned the outstanding debt of the loan and the final negotiations will take place by March 31.
The statement also said that the false reports have caused a great deal of distress to the friends and families of the legendary director.
Kavithalaya was established in 1981 by K. Balachander and has produced some commercial and critically acclaimed movies like Mani Ratnam’s Roja and Rajinikanth-starrer Muthu.