Dil Raju IT Raids: Who Is This Financier Satya Rangaiah?
Income Tax Raids are happening on Multiple Production Houses of the Telugu Film Industry. The IT Sleuths are also after Satya Rangaiah Finance Company which gives Finance to almost all Major Production Houses.
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Who is this Satya Rangaiah? This name maybe not familiar to Telugu audience but he is a very popular name in the industry. He has been in the business for 4-5 decades and is financing films since NTR and ANR Days.
He is from Dharamvaram, Anantapur district. His son, MSR Prasad is running the business now.
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Earlier Film Finance used to run on Lab Letters. Producers should submit “No Dues” Letters from their Financiers to get their Prints released before the release. If the letters were not given, the Prints will not be released.
Slowly the culture of Finance through Lab Letters stopped because if the movie is struck in cans, the finance is struck.
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Later, the Financiers would pledge the Film Satellite and Distribution Rights. Every specific rights would have some value. When that amount of finance was repaid, that particular rights used to be released for the buyer.
Later, the finance used to happen based on Digital and Hindi market. If the business falls below the expected levels, Producers used to pledge their assets to get the Lab Letters.
Now the finance business has become so strict. The producer has to get a OTT deal and only then, the finance would be given keeping that document. At times, the reputation of the producer and his financial position are also considered.
But then, Financiers are avoiding that as much as possible. If they doubt a combination is not exciting enough, they strictly insist on OTT Agreement.
Some of the Banks like ICICI are also giving finance at lower interest rates basing on the OTT Agreements. Producers are opting for this as well due to lower interest rates and other hassles.
Coming to this IT Raids, Rumors are that the IT Department is of the opinion that Dil Raju had a smooth release of Game Changer.
The smooth release of the film contradicts the declared financial position of the Production Company, the Department believes. The Raid is to unearth how Dil Raju manages to pool in the finances. All those who helped him are also under radar.
Rumors are that Satya Rangaiah Prasad helped the movie at the last minute (In cinema language, రిలీజ్ కు అడ్డు పడ్డాడు). That means he was the surety for other financiers to ensure a smooth release.
Mango Ram is also a long-standing associate of Dil Raju. He is also being raised by the Department. Ram executes Third Party Digital Deals of Dil Raju including Sankranthiki Vasthunnam.
Along with Dil Raju‘s Financial Records, the accounts of those who helped him are also under radar.
We had a discussion about Film Finance in our 2024 Roundtable with Producers – Bunny Vas, Sahu Garapati, Sudhakar Cherukuri, and Harshith Reddy. You can check it out for more insights
