The Economic Offences Wing (EOW) has taken over the investigation into the breach of contract charge that Varma has slapped on T-Series over a music deal the two inked in June 2006.
A team of EOW officers visited the T-Series office in Mumbai Saturday evening and took away some documents pertaining to the deal. T-Series head Bhushan Kumar was present in his office when the EOW officers dropped in.
According to the deal, Varma was supposed to transfer the rights of the music of four of his movies, 'Darwaza Band Rakho,' 'Nishabdh,' 'Ram Gopal Varma Ki Aag' and 'Shiva' to T-Series as well as the rights of 10 of his forthcoming productions.
Before leaving, the officers told Kumar to hand over the agreement that his company had signed with Varma's production company, RGV Films, for forensic examination. Varma had alleged that the document was forged.
The Economic Offences Wing raid on the T-Series office in Versova in northwest Mumbai followed Varma's complaint March 13 at the Versova police station.
Varma alleged that the music company was cheating him over the 2006 music deal. In an attempt to pre-empt Varma's move, T-Series March 19 lodged a complaint with the Sector 20 police station in Noida, adjoining New Delhi, against the filmmaker, accusing him of causing to the music company loss of Rs.14 million over the deal. T-Series has a manufacturing unit in Noida.
In his complaint, a T-Series representative alleged that Varma caused a substantial loss to the company by walking out of the deal.
The T-Series representative also stated in his complaint that in spite of his company having paid Varma the contract amount of Rs. 14 million, he later backed out of the deal and gave the music rights of his forthcoming movies to another company.
T-Series further alleged that, in spite of having breached the contract, Varma's company, RGV Films, did not return the contract amount, which it was paid two years ago.
Varma in his March 13 complaint at Versova police station in Mumbai said he was being coerced by T-Series to hand over the music rights of 10 of his forthcoming movies on the basis of a forged agreement.
He said he never signed a contract to hand over the music rights of any of his forthcoming movies to T-Series.
Instead, he alleged that T-Series had held back the balance payment of Rs. 4.6 million it owed to him to acquire the music rights of four of his above-mentioned movies.
Both Bhushan Kumar and Ram Gopal Varma refused to comment on the case saying the authorities concerned were investigating the charge and anything they said now would be deemed biased.