Ever since the release of Ramu's film Department starring Dutt, Oberoi had been embroiled in one controversy after the other regarding the debacle of the film.
With Dutt having washed his hands off Oberoi on Monday, the latter has nothing to do with the star and his production house any longer.
Says a source close to the star, "As it is Sanjay was being warned about the high-handedness of Dharam by those close to him. After Ramu lashed out at him and made several allegations against him, the message was clear to the star. Dharam's removal was the only way for Sanjay to get out of the mess he found himself in."
Adds the source, "Last week he made his wife Maanayata the CEO of his production house, a post occupied by Dharam.
He allowed him to remain his manager and look after the business interests. But he realised that he was better off without him and wants to start anew on a fresh note. He has already started looking for a new person to look after his work."
Oberoi had been associated with Dutt for the past couple of years and took all the decisions on behalf of the star. Now that the equations have changed, Dutt had to sever all ties with him to put his production house and professional life in order.