Cash crunch hits Tollywood

With Income tax raids happening on producers and distributors, the Tollywood industry is in utter confusion. No one in the industry is sure about how to respond to this or deal with the current situation? 

Moreover, the ban on Rs 500 and Rs 1000 notes has affected the movie shootings. Small movies have stopped the shoots, as labourers have to be paid on daily basis for work. Since Rs 500 or 1000 notes are not valid, the producers are not able to give them money daily. There is also cap on withdrawals from the bank.

About fifteen movies, which are underproduction, have called off the shoots on temporary basis. On the other hand, there is no liquid cash flow in the industry right now.