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This is an archive article published on June 29, 2011

Gangsters’ grip on Telugu cinema

Nexus for funding and distribution rights,says CID after arresting film producer.

In the Telugu film industry,gangsters use muscle power to dictate which distribution company should get the rights for which new release. This has set up a nexus where,much like the way it has been known to happen in Bollywood,filmmakers use the backing of gangsters to find funding for their films,the Andhra Pradesh police say.

The arrest of film producer Singanamala Ramesh Babu in connection with the murder of a gangster has begun to unravel the industry’s underworld links,an area largely unexplored by investigators so far. It was only after the murder of Maddelacheruvu Suryanarayana Reddy,alias Suri,that several directors,producers,film distribution agents,and financiers mustered the courage to complain to the police.

Singanamala Ramesh Babu,34,arrested from Chennai on Friday,was allegedly part of a trio with two gangsters,one the murdered Suri and the other Bhanu Kiran,the man suspected to have committed the murder. Kiran,who is absconding,allegedly shot Suri dead in January 3 over the way they should share the money they had made.

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“Singanamala Ramesh Babu,Suri and Bhanu Kiran used to threaten and intimidate financiers to loan them huge amounts of money which they to finance films,” says S V Ramana Murthy,additional director general of police,CID.

“They also used to take money from owners of reproduction companies promising them VCD and DVD rights for the films which they were financing. But they would take money from one owner and give the rights to another,or never give the rights at all. Anyone who protested was intimidated into silence,” the Addl DG added.

Both Suri and Bhanu Kiran belong to a group known locally as “factionists” from the Rayalaseema region. In a region hit by strife over caste,money and politics,landlords and powerful families would turn “faction lords” with private armies to take on or kill rivals. Many of these “factionists” from the region,particularly Anantpur district,have now settled in Hyderabad and turned full-fledged gangsters.

The CID is investigating three cases,including the murder,that point to Ramesh Babu’s involvement with the two gangsters. Both came to light after Suri’s murder,when the people they had allegedly cheated finally complained to the police.

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B Vaijayanthi and her husband Jayant Reddy,who distribute and finance films,told the police they had loaned Rs 18.1 crore to Ramesh Babu,convinced by the security he showed — 9 acres he owned in Tamil Nadu — and intimidated when he cited his contacts with Suri and Bhanu Kiran.

Later,rather than repay the money,Ramesh Babu allegedly offered to get three Hyderabad flats worth Rs 3.4 crore registered in the couple’s name. Police say that Kiran,meanwhile,convinced a real estate agent to get the registration done,assuring him he would get a land dispute settled in his favour.

When the couple started pressuring Ramesh Babu to pay up the remaining Rs 14.7 crore,they were allegedly threatened. They also found that Ramesh,having shown them land as security,was using the same 9 acres to secure several other loans — and not repaying any. When they threatened to lodge a police complaint,Ramesh Babu allegedly called them to a film lab where they were introduced to Kiran and threatened. The couple kept quiet till January 13; the case was transferred to the CID on May 11.

In the third case,Ramesh Babu,another producer and the gangsters allegedly forced the managing partners of Shalimar Video Company and Universal Home Entertainment to buy distribution rights for two films at Rs 34.75 lakh each. The rights were,however,to another company and Ramesh Babu and his aides refused to return the money to Shalimar and Universal. Shalimar’s Mohammed Ashraf complained only in January,after Suri’s murder.

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When they were in Rayalaseema and for years after,Kiran used to be Suri’s right-hand man. When they shifted to Hyderabad,they ventured mainly into film financing but also helped settle controversial real estate deals,besides extorting money. Though they largely operated together,they also struck deals individually,causing the eventual rift between them.

After Suri’s death,Kiran is believed to have taken over the reins. Though he is absconding,cops believe he is still conducting his businesses through contacts. Ramesh Babu was in constant touch with him,say police.

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