The courts have asked Boney Kapoor to return the Rs 12 crore he owes steel tycoon Lakshmi Mittal for a firm that never took off, says a media report.
Boney Kapoor and Lakshmi Mittal's LMB Holdings came together in 2006 for a joint venture to form a company Karya Entertainment.
They were supposed to make five films for Rs 225 crores. Boney was paid the advance fee of Rs 10 crore to set up this company.
Since the joint venture fell through Lakshmi Mittal's company had filed a case against Boney Kapoor to return this amount.
On November 12, the arbitration proceedings judge, Justice SN Variava, passed the award in favour of LMB Holdings and Boney has been asked to return Rs 12, 69, 26,027.
Boney Kapoor says, “My entire negotiation happened in 2006 and 10 crores was paid to me in June 2007 as an advanced payment. It was reported in press. We were negotiating for the joint venture. The joint venture agreement draft was being worked out.
"In the meantime, I had the Wanted schedule to start. Since the negotiations were taking time I told them if they are seriously interested in having the joint venture I need money now because my film is starting. So they paid me this amount. Somehow the joint venture didn't work out and they gave me this advance against the joint venture.”
He adds, “In fact, before the release of Wanted, they tried to get a stay on the release of the film. The order was ruled in my favour and I was asked to pay them 2 crore which I did.” Boney says he has documents to substantiate his argument. “There is an MOU and letter of intent in place.”
“I have never denied that they paid me” says Boney, but he also feels that he doesn't owe them so much money.
“They delayed my payment. They almost wasted 18 months of my time. There are so many things that I did for the company which was supposed to be formed. I feel I have given enough time and there were a lot of opportunities that I lost too. I got two-three major deals done for them. We are filing an appeal to set aside this order. We will go to the high court and even supreme court. We will fight it out.” Boney didn't confirm the amount.