Legal horror: 'Haunted 2' release faces NCLT deadlock, Vikram Bhatt legal team rejects RP claims

Mumbai (Maharashtra) [India], May 11 : In a dramatic turn of events that mirrors a high-stakes legal thriller, the release of the much-anticipated sequel, 'Haunted 2', has hit a massive legal roadblock.

A Public Notice issued by CA Bharati Manoj Daga, the Court-appointed Resolution Professional (RP) for Hare Krishna Media Tech Pvt Ltd, has effectively placed a "No Entry" sign on the film's scheduled release of June 12, 2026.

The notice, issued in the wake of ongoing insolvency proceedings, serves as a stern warning to the Indian film trade that the movie is currently a "frozen asset." It cautions the public at large and the Indian film trade, including distributors, exhibitors, OTT platforms, broadcasters, streaming platforms, cinema chains, advertisers, licensors and aggregators, against dealing with the film while the matter remains pending before the National Company Law Tribunal.

Speaking about the matter, Daga said the notice was intended only as a word of caution for trade stakeholders, as the dispute surrounding the film is currently sub judice.

"The notice is published by me in the trade magazine for the people at large to know in the trade that there is this kind of thing which is happening in the court. I cannot say anything more because the matter is sub judice and it can go anywhere," Daga told ANI.

However, filmmaker Vikram Bhatt and VSB Production LLP issued a stern rebuttal to a public notice released by Resolution Professional (RP) CA Bharati Daga, labelling the claims as "baseless" and "redundant."

Through his legal representative, Adv. Zain J. Shroff of YNA Legal LLP, the production house, clarified that the entity in question, Hare Krishna Media Tech Pvt Ltd, holds no ownership or commercial ties to the film currently under scrutiny.

"Mr Vikram Bhatt and VSB Production LLP categorically deny the baseless implications sought to be created through the so-called public notice issued by CA Bharati Daga. Hare Krishna Media Tech Pvt Ltd has no subsisting ownership or commercial connection with the film in question, nor is any transaction undertaken or being enforced with the said company. Thus, there is no justification or reason for the RP to have issued this notice and in any event, it is redundant and of no legal significance," said Shroff, Partner, YNA Legal LLP.

The statement further said that the NCLT, through its order dated November 18, 2025, had declined to restrain the release of the film.

"The Hon'ble NCLT vide Order dt. 18.11.2025 had declined to restrain the release of the film and merely directed disclosure of revenues, which order has attained finality and continues to operate," the statement read.

Bhatt's legal team also alleged mala fide intent behind the public notice and raised objections over Daga's appointment as RP.

"The present notice appears to be nothing but a continuation of a mala fide and motivated campaign against Mr. Vikram Bhatt, despite serious complaints of professional misconduct and non-disclosure, especially regarding her association with the K Sera Sera Group, which squarely disqualifies her from being appointed as an RP. Appropriate steps in this regard before the appropriate authorities are contacted. The matter is presently sub-judice," the statement added.

Daga has filed IA No. 5299 of 2025 before the NCLT in connection with what she described as "certain preferential transactions and connected reliefs" under the Insolvency and Bankruptcy Code (IBC), 2016.

The conflict centres on a legal battle at the National Company Law Tribunal (NCLT), Mumbai Bench. On April 15, 2026, the Hon'ble NCLT directed all parties, including director Vikram Bhatt and associated entities, to maintain the status quo regarding the film.

The RP has filed an application (IA No. 5299 of 2025) citing "preferential transactions," suggesting that the rights or financial dealings of the film may have been handled in a way that violates the Insolvency and Bankruptcy Code. The RP noted with concern that despite the court's order, a release date of June 12 was publicly announced.

"Hare Krishna Media Tech went into Corporate Insolvency Resolution Process (CIRP) under the IBC regulation rules, and that is how I was appointed by the tribunal," she said.

Daga said the dispute centres around whether 'Haunted 2' is an asset belonging to Hare Krishna Media Tech.

"There is an asset on dispute which according to me looks like from the books that it is mine. However, it was given away to somebody else. So that is the case that I filed in the NCLT," she said.

She said the film was initially registered in the company's name, and expenses had been incurred toward its development.

"The reason why I thought the movie belonged to me is that the previous name of the movie was initially registered in Hare Krishna's name. There were a lot of expenses towards Haunted 2. So that is the reason I am saying that Haunted 2 is the movie which is in question," she said.

The notice further claimed that "it has come to the attention of the undersigned that certain persons/entities/related parties/assignors/assignees have purportedly announced the release of the Subject Film on or about 12/06/2026 despite the subsisting Status Quo Order."

" The Status Quo Order is that 'Haunted 2' movie, which I have told the court, looks like belonging to me. That is the status quo that the order says that it should not be released till the matter is over, till any decision finally comes out. The stay is on 'Haunted 2' so that it does not get released till the status quo needs to be maintained on whatever the state is today. That is the status to be maintained till the court gives any decision," explained Daga.

Daga also expressed concern over reports and social media announcements regarding the film's release despite the court order.

"Because the social media is flooded with the release, and when the status quo is there and still the media says it is going to get released. So I'm getting a little wary that, in spite of the status quo, this is happening because nobody knows about it. It is a court decision. No, the court decision is not public.....So it's just a trade to know that something is there with respect to the movie and they should be cautioned about it," she said.

She clarified that the public notice was intended as "a word of caution", specifically for industry stakeholders who may engage in financial or commercial dealings related to the film.

She added that the tribunal will determine whether the film belongs to the company and whether any transfer was lawful.

"There are so many things that need to be decided. Nothing is yet decided. Everything is a question mark on the table of the NCLT. So once the judge looks at it, goes through it, gives a judgment, it is everything is objectified. Can't be said right. Can't be said wrong. It cannot be said anything," Daga said.

Vikram Bhatt's upcoming film 'Haunted 3D' is slated for a theatrical release on June 12, 2026.

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