Peddi Producer Satish Kilaru Rejects 7.5 Percent Share Promise To Exhibitors

HYDERABAD — Film producer Satish Kilaru has sparked a fresh dispute in the Telugu film industry by declaring he will not honor a 7.5 percent share agreement promised to exhibitors, including Vriddhi Cinemas, for his upcoming movie 'Peddi'. At a sub-committee meeting held on June 15, 2026, exhibitors strongly objected to Kilaru's stance, which rejects a commitment previously made on his behalf regarding hiked ticket prices and additional premiere rents.

The conflict stems from ongoing percentage agreement negotiations between the film's producers and exhibitors. The Film Chamber had previously promised exhibitors a 7.5 percent share of hiked ticket prices and additional rents for the premiere of 'Peddi'.

Kilaru stated he was completely unaware of this decision, claiming it was made unilaterally without his permission while he was occupied with the film's promotional activities. He formally replied to a Chamber letter on June 15, 2026, stating he could not commit to the terms.

Prior to this, two meetings were held to resolve the issue. Kilaru attended the first meeting, where he requested stakeholders to exempt 'Peddi', though no decision was reached. Kilaru did not attend the second meeting.

During that second meeting, producer Naga Vamsi represented the production side. Naga Vamsi initially offered a 5 percent share of the hiked prices, but exhibitors insisted on 7.5 percent. Naga Vamsi subsequently agreed to the 7.5 percent demand on behalf of the 'Peddi' producer. Following this, the Chamber released a press note on the 27th and sent a formal letter detailing the commitment to Vriddhi Cinemas.

The dispute has escalated further with Telangana Film Chamber General Secretary VL Sridhar announcing the implementation of the Percentage System in the Nizam region starting July 2nd, stating that only films agreeing to the system would be screened.

In response, Naga Vamsi questioned Sridhar's authority to make the announcement. Naga Vamsi declared that they would boycott Sridhar's theaters and screen the film in other available theaters.

The next meeting regarding the dispute is scheduled to take place in fifteen days.