Raaj Shaandilyaa Terminates Contract With Ektaa Kapoor’s Balaji Motion Pictures (EXCLUSIVE)

Ektaa Kapoor and Raaj Shaandilyaa have been in dispute over the alleged breach of his three-film-contract with Balaji Motion Pictures.

“Shaandilyaa and Kapoor signed a three-film contract in 2019. While he was committed to do three films for the banner, it wasn't an exclusive contract and he was free to pursue other projects outside Balaji Motion Pictures. So when he received an email from the banner raising concerns regarding his involvement with ‘Bhagam Bhag 2’ as director, he felt compelled to terminate the contract as it was only forgoing opportunities that would otherwise be creatively and financially rewarding,” a source close to the development exclusively told to Variety India.

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Confirming the development, Raaj sent out the statement, saying, "I, Raaj Shaandilyaa, had, in accordance with my contractual rights, issued a notice terminating my arrangement with Balaji Telefilms. It has now been over two weeks since the termination notice was issued. If Balaji Telefilms believed it had any sustainable legal basis to challenge the termination, it was open to them to approach the appropriate civil court. No such proceedings have been initiated. Instead, what has now surfaced are attempts to level exaggerated and baseless criminal allegations. These accusations are wholly unfounded and appear to be nothing more than an attempt to intimidate and browbeat after having realised that there is no viable case to challenge the termination."

"I remain fully confident of my legal position and will address any such allegations through the appropriate legal process. It may also be clarified that the film Bhagam Bhag 2 is very much on track and the project will proceed as scheduled," he further added. "Members of the film and creative industry may take note of the manner in which such pressure tactics are being employed and draw their own conclusions when deciding future professional associations."

Shaandilyaa has also finished writing for their third film, “Sonam Bewafa Hai,” but the project remains in limbo without lead actor confirmation, and a finalized director agreement pending. Shaandilyaa had shared the final script to the producer in September 2025, in accordance with the mutual timelines agreed between the parties.

Sources say the nature of recent communication from the production house created unease for the director. “The tone and tenor from the Balaji Motion Pictures inquiring into his professional activities caused Raaj significant discomfort. The nature of these inquiries has felt intrusive and mistrustful and has affected his ability to work freely and confidently within their professional relationship. This led him to terminate the contract with Ektaa Kapoor to ensure that his professional interest and his long-standing relationship are safeguarded,” the source further added.