Lingaa loss issues
The 2014 Indian Tamil language film Lingaa, despite being one of the highest-grossing Tamil films of the year, was considered a box-office bomb due to the high production and distribution costs involved. The distributors faced huge losses and asked for their money back, with few of them submitted petitions to go on a hunger strike to protest against the losses incurred. Many of them claimed that the film had incurred only 30 percent of the down payment after 25 days of its release. Rajinikanth, the film's lead actor, later refunded one-third of the loss reportedly incurred by distributors and exhibitors. He decided to pay them 'on a humanitarian basis', who demanded a full refund and had threatened a "begging protest" in front of the actor's residence.
Overview
According to R. Singaravelan, who acquired the distribution rights of the film in Trichy and Thanjavur areas stated about the film's losses in an online interview on 19 December 2014. He added that the film failed to collect 20% of their investments during the first week of its release, further citing that the excessive hype for the film led to higher prices for distribution rights. He also condemned the makers' decision to release the film on actor Rajinikanth's birthday, due to the ongoing half-yearly examinations in schools. Few industry sources revealed that Rajinikanth's compulsion to do Lingaa is because of the failure of Kochadaiiyaan, which resulted in a police case filed against his wife Latha Rajinikanth accusing for financial fraud. Vijayabhargavi Entertainers stated that they suffered losses in Chengalpet region. Capricorn Pictures incurred losses in North Arcot and South Arcot circles. Sukra Films and Chandrakala Movies lost money in Coimbatore and Tirunelveli-Tuticorin respectively. The distributors claimed Lingaa recovered only 30 percent of the down payment after 25 days of its release.Distributor's protests
On 3 January 2015, Singaravelan released an audio note citing that all the distributors will go on a hunger strike in order to protest against the losses they incurred. They submitted a petition in the Madras High Court to seek permission to go on fast at Valluvar Kottam, as they initially demanded to fast in front of Rajinikanth's residence in Poes Garden which was denied due to security reasons. The protest saw the likes of political activists with Seeman of Naam Tamilar Katchi supported the distributors.While the move saw various reactions from politicians and members of the film fraternity, Rockline Venkatesh, the film producer insisted Singaravelan and other distributors not to malign Rajinikanth's image, whereas T Siva of Vendhar Movies who purchased the film's Tamil Nadu theatrical rights stated that "Many distributors faced losses due to the poor performance of the film, but it is not right to talk about the losses while the film is still running in theatres. When it is completely out of theatres by Pongal, we will sit together with all parties concerned, including Rajinikanth, and find a solution". The distributors then planned for an indefinite hunger strike starting from 27 January, but was later withdrawn after the producers assured the parties that the losses should be compensated.
After a discussion with film exhibitor Tiruppur Subramanian, Venkatesh on 12 February announced that he agreed to settle only 10 percent of the losses which the distributors declined and later asked for a full refund. On 17 February 2015, distributor Singaravelan had announced a 'mass begging protest' in front of Rajinikanth's residence.
Reactions
Following the distributors protests, on 18 February, the Tamil Film Producers Council condemned their decision as well as holding Rajinikanth accountable for the film's losses. They also claimed that it is "unethical to harass Rajinikanth and the producer Venkatesh" and stated that "the issue should be resolved amicably". Rajinikanth's fans also planned to stage counter protests against the distributors in response to the begging protest staged by distributors.Compensation
On 21 March 2015, Rajinikanth announced that he agreed to pay one-third of the loss incurred by film distributors. Rajinikanth along with Rockline Venkatesh had decided to pay an amount of each to the distributors, and a press-release from TFPC said that an amount of has been handed over to the council, which was later disbursed to the distributors and theatre owners. Confirming the news, President Kalaipuli S. Thanu of TFPC stated that the "matter has been resolved and the distributors called off their protests".Although distributors received only ₹6 crore of the ₹12.5 crore compensation, with Rockline Venkatesh paid ₹4.5 crore to the distributors, Tiruppur Subramanian volunteered to contribute the remaining ₹1.5 crore payable to distributors and theatre owners.