A case was filed against noted director Raghavendra Rao that he has misused the valuable land allotted to him by the government for constructing a studio or recording theatre useful to the film industry.
Film director Bala Krishna who filed the petition in the high court has said that the government had allotted land valued at Rs. 300 cr. for a nominal price of Rs. 80,000 an acre for constructing a studio useful for the film industry. Instead of complying with the purpose for which the land was given, Raghavendra has constructed Cine Max complex and was doing business by cheating the government, the director has contended. He has charged that Raghavendra Rao had violated the rules specified for the allocation of the land.