Telugu Film Chamber Makes Agreements Mandatory, Seeks Strict Compliance
TFCC stated that it has been receiving an increasing number of complaints related to film distribution and other commercial transactions
Hyderabad: In a significant move aimed at bringing greater discipline to Tollywood’s business practices, the Telugu Film Chamber of Commerce (TFCC) has made written agreements between producers and distributors mandatory. The apex body has also decided that complaints will not be entertained unless a copy of the executed agreement is submitted within 15 days of the transaction.
In an official communication addressed to all concerned, the TFCC stated that it has been receiving an increasing number of complaints related to film distribution and other commercial transactions. However, in many instances, the parties involved had entered into arrangements without executing written agreements that clearly outlined the mutually agreed-upon terms and conditions.
“The absence of written agreements has resulted in avoidable disputes and has limited the Chamber’s ability to objectively examine and address such complaints,” the letter noted. The issue was discussed in detail at the Executive Committee meeting of the Telugu Film Chamber of Commerce held on January 29, 2026.
Following deliberations, the Executive Committee strongly emphasised that the execution of a written agreement between film producers and distributors is essential and should be treated as a mandatory industry practice. Accordingly, the Chamber has decided that it will not entertain, register, or process any complaint or dispute arising out of transactions where no written agreement exists between the concerned parties.
Furthermore, members seeking to file complaints must do so within 15 days and submit a copy of the executed agreement along with the complaint. This procedure will be strictly enforced to ensure proper verification and fair handling of disputes. Parties entering into commercial arrangements without proper documentation will do so at their own risk and responsibility.
Welcoming the decision, producer Raj Kandukuri said the move would protect both producers and distributors and help avoid future complications. “Having a written agreement that clearly mentions the total amount paid by the distributor, whether GST is included, and other financial details will make business more transparent. Earlier, some disputes came before the Chamber, but nothing could be done due to oral agreements,” he said.
Vijayender Reddy, Joint Secretary of the Telugu Film Chamber of Commerce, said honorary secretary Ashok Kumar has been keen on streamlining the filmmaking business. “The issue was discussed in the Executive Committee, and it was felt that written agreements are key to transparent business transactions compared to oral agreements. With a draft copy submitted to the Chamber, any future disputes can be resolved faster and without hassle,” he added.