Six Kannada film directors have approached the Criminal Investigation Department (CID) seeking permission to complete shooting of their films under the banner Harsha Entertainment Pvt Ltd (HEPL) launched by Khasnis brothers — Harsha, Sanjeev and Shrikant — prime suspects in a Rs 400-crore scam.
HEPL took up production of eight films — Aira, Shadibhagya, MTV Subbulakshmi, Second Bucket Balcony, Premadalli, Preethi Praaptirastu, Dandayatre and Utsava.
Directors Pawan Wadeyar (director of Aira and Shadibhagya) and Shankar (MTV Subbulakshmi) have approached the CID sleuths seeking permission.
They told the police that they had already completed about 70% of the shooting. They couldn't continue the shooting as the Khasnis brothers are lodged in Central Prisons, Parappana Agrahara. They have already struck a deal with other producers to complete the shooting.
Shankar, who had met CID sleuths on Friday, said: "I have already completed about 70% shooting of MTV Subbulakshmi. Since the Khasnis brothers are jailed, I am unable to continue the shooting. I have finalised the project with another new producer. I requested the police to grant permission for the shooting."
Pawan Wadeyar has also made similar request.
However, the sleuths have directed them to approach the court.
"The Khasnis brothers were producing these eight films using the money deposited by the public. Therefore, we have requested directors to approach the court seeking permission," said a senior officer.
According to the investigation, the Khasnis brothers are involved in a Rs 60-crore cheating scam. They used public money for film production, share market and property purchase.
Sanjeev, one of the brothers, has bought a 21-acre land at Kalghatgi in Dharwad and constructed two houses.
"We have requested the government to confiscate the property," the officer said.
The trio suffered losses after demonetisation. They tried to return around Rs 25 lakh to investors through demonetised Rs 500 and Rs 1,000 notes. However, some depositors refused to accept deomonetised notes.
The trio wound up the company on April 11, 2017, and vanished with investors’ money. The police picked them up from a hotel in Mathura in Uttar Pradesh.
Cases were registered against them under IPC sections 120 (b) (criminal conspiracy), 406 and 408 (criminal breach of trust), 420 (cheating) and Section 9 of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, (Fraudulent Default by Financial Establishment), 2004.
The Khasnis brothers were small-time moneylenders in 2005. The business grew rapidly and they started taking deposits from the public promising that money would be invested in the stock market and film production.