Yash Raj Films (YRF) dismisses reports that S.M. Masood, chief of City Limouzines who was arrested by the economic offences wing (EOW) this month for allegedly duping people, invested money in their hit film "Chak! De India".

"YRF doesn't get investors for any of its movies and therefore this news is totally incorrect," Rafiq Gangjee, vice president (marketing and communications) of YRF, told.

"However, post the release of the film, there was an advertising fee that was charged (by YRF) at the time of the release of the VCD of the movie towards the insertion of their ad in the VCD. As sponsors of the women's hockey team that time, this tie-up was important to them. The amount was approximately Rs.35 lakh (Rs.3.5 million)."

Masood, who is the managing director of car rental company City Limouzines, is reported to have been arrested in Delhi Feb 4 by the EOW of Mumbai Police for allegedly duping people of crores of rupees by floating a dubious investment scheme.

During interrogation, Masood reportedly told EOW officers that he invested up to Rs.10 million in film projects. Masood claims he invested in "Chak De! India" and "Ram Gopal Varma Ki Aag", according to reports.

Masood reportedly owes the postal department Rs.20 lakh. His company City Limouzines had an agreement with the postal department for bulk posting of cheques to investors. While interrogating Masood, EOW found he had created immovable properties worth Rs.170 crore across Maharashtra and elsewhere.