For the past few days, there have been various allegations and controversies surrounding Kochadaiiyaan and Latha Rajinikanth. Latha was asked to pay back an amount of Rs 6.20 crore, along with the interest, to the company, Ad Bureau Advertising Pvt Ltd, who supplied the loan for the post-production works of the film.
 

Now, an official press statement from the film's production house, Media One has been issued. As per the statement, Media One states that neither Rajinikanth nor Latha is liable to Ad Bureau, and their allegation. The production house has also requested everyone not to malign or defame Latha Rajinikanth's name on the basis of unverified and unsubstantiated allegations.

Their press statement is as follows:

"
PRESS RELEASE BY MEDIAONE GLOBAL ENTERTAINMENT LIMITED
DATED 12 JULY 2018

There has been many incorrect and unsubstantiated reports in the media touching the disputes that have arisen between M/s. Mediaone Global Entertainment Limited (Mediaone) and Mrs. Latha Rajnikanth on one hand and M/s. Ad-Bureau Advertising Pvt. Ltd. (Ad-Bureau) on the other hand.

The disputes have arisen out of a Memorandum of Understanding (MOU) concluded between M/s. Mediaone and Ad-Bureau under which Ad-Bureau undertook to grant M/s. Mediaone a loan of Rs. 20 Cr towards post production work on the film "Kochadaiiyaan" starring Rajnikanth, which was being produced by M/s. Mediaone. Mrs. Rajnikanth is not a party to the said MOU.

Under the MOU M/s. Ad-Bureau was given full distribution rights for the film in the state of Tamil Nadu along with minimum guaranteed profit in return for the loan amount. However, only Rs 10Cr out of Rs. 20 Cr stipulated under the MOU was advanced by Ad-Bureau. As a result of this, the release of the film, "Kochadaiiyaan" was delayed by several weeks. Nevertheless, till date M/s. Mediaone has repaid Rs 9.2 Cr out of the total loan amount of Rs 10 cr in timely payments under the MOU and remains willing to pay the remaining Rs 80 lacs due under the MOU.

However, in further breach of the MOU, M/s. Ad-Bureau has demanded via letter dated 11.11.2014, that M/s. Mediaone pay a sum of Rs 10 Cr along with the interest of Rs 4.30 Cr. for a period of six months amounting to a rate of interest of 80% per annum! Such a demand is not only unsupported by the terms of the MOU but is also in contravention of Tamil Nadu State Law against prohibition of collecting exorbitant interest which is a Penal Offence and criminal complaint was given to commissioner of police and FIR has been filed. FIR No: 1743185 it is still under investigation.

In addition to the above, M/s. Ad-Bureau has launched a smear campaign against M/s. Mediaone and Mrs. Rajinikanth. M/s. Ad-Bureau has also initiated civil proceedings without any merit and launched criminal complaints against M/s. Mediaone and Mrs. Rajinikanth based on fabricated and unsubstantiated allegations.
 

Mrs. Rajinikanth is neither a shareholder nor a director of M/s. Mediaone Global Entertainment Limited.

It is clarified that M/s. Mediaone is only liable for the alleged claim made by M/s. Ad Bureau if it is proved before the court of law and the matter is sub-judice. Mrs. Latha Rajinikanth has nothing to do with the affairs of M/s. Mediaone and therefore we request the Print, Visual, and Social Media not malign/defame Mrs.Latha Rajinikanth on the basis of unverified and unsubstantiated allegations/claims by M/s. Ad Bureau.

From the foregoing, it is but evident that M/s. Ad-Bureau is resorting to such diabolical actions to harass and arm-twist M/s. Mediaone and Mrs. Rajinikanth and thereby extort monies from them."