MUMBAI: Subhash Ghai-promoted Mukta Arts has exited Red Carpet Films, selling off its entire 50.01 per cent stake in the newly created movie company to founder-promoter Manish Goswami.
In a related development, Eros International has snapped ties with Red Carpet Films. Eros had expressed intend to distribute and fund the movie projects of Red Carpet Films.
“We had an understanding with Red Carpet Films which never materialised,” Eros International CEO Jyoti Deshpande tells Indiantelevision.com.
With no project kicking off and Eros out of the scene, Mukta Arts decided to dump Goswami‘s diversified venture at par value, getting back its purchase price of Rs 2,50,470. Goswami runs a TV content company, Siddhant Cinevision, which has made successful serials like Parampara, Kittie Party and Ashirwaad.
“We had bought the stake in the company at par value because it had its distribution and funds in place with Eros. This would help us increase the bandwidth of our production capability. However, since the company did not get the support from Eros, we saw no point in continuing with this relationship,” a senior Mukta Arts executive tells Indiantelevision.com on request of anonymity.
When contacted, Goswami did not elaborate on the reasons behind Mukta Arts‘ decision to exit from Red Carpet Films.
Soon after roping in Mukta Arts as an equity partner, Red Carpet Films had sealed a four mid-budget movie-deal with Eros International worth Rs 400 million. But the projects stayed grounded as Eros divorced its relationship with Red Carpet Films.
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