Pongal dampener: Jana Nayagan release delay triggers ₹60-crore refunds

In the Tamil film trade, the Pongal festival season is the most coveted release window, with the extended holiday weekend historically delivering record-breaking box-office returns.

For producers, distributors and exhibitors, multiplexes and single-screen theatres, Pongal often sets the commercial tone for the year, with star-driven releases repeatedly shattering opening-week records. As 2026 approached, expectations were especially high, with two major films — Vijay’s Jana Nayagan and Sivakarthikeyan’s Parasakthi — positioned to dominate screens across Tamil Nadu and overseas markets.

Unexpected hurdles

However, the road to release was fraught with unexpected hurdles. Tensions simmered in trade circles right up to the eleventh hour, primarily due to delays in the censor certification process by the Central Board of Film Certification (CBFC). Both films faced scrutiny. For Jana Nayagan, the CBFC’s regional panel initially recommended a UA 16+ rating, but alleged political pressure stalled the final clearance, leaving the production team rushing to knock on the doors of the court. And such last-minute hurdles come with a cost. (more of it later in the copy)

Also read: Political storm over Vijay’s Jana Nayagan: Is BJP playing alliance chess in TN?

Parasakthi, too, encountered similar roadblocks, though it managed to secure approval at the last minute, allowing the release as scheduled.

Vocal support

The controversy quickly escalated beyond the confines of the industry, drawing vocal support from a cross-section of political heavyweights and cinematic luminaries.

Tamil Nadu Chief Minister MK Stalin recently posted on his X page, highlighting the CBFC's high-handedness, while the Congress also echoed these sentiments, framing the issue as a potential infringement on creative freedom.

From the film industry, veteran actor-filmmaker Kamal Haasan, directors such as Pa.Ranjith, Karthik Subbaraj, Mari Selvaraj Ram Gopal Varma and Vikraman, questioned the need for artistic freedom in the industry.

Stars like Silambarasan TR, Ravi Mohan, Harish Kalyan, director Venkat Prabhu, Sibi Sathyaraj, Jiiva, Jai, directors Ajay Gnanamuthu, Rathna Kumar, have all come forward to offer their unwavering support to actor Vijay.

While the Sudha Kongura-directorial Parasakthi had a smooth release and registered a good opening, Jana Nayagan’s fate hung in the balance. KVN Production, producers of Jana Nayagan petitioned the Madras High Court for intervention, seeking to expedite the censor certificate. As of now, the wait persists, with the film's release postponed indefinitely.

Also read: Jana Nayagan release: Madras HC Chief Justice Bench stays single judge's order

Distributors, particularly in international markets, bore the brunt of the uncertainty.

Refunds and uncertainty

Ahimsa and Boleyn, the UK-based handlers of Jana Nayagan, is upset. “The postponement is undoubtedly regrettable,” the UK-based handlers told The Federal.

“We had orchestrated a grand rollout, with advance bookings of nearly Rs 8 crore. Such swirling doubts forced us to refund the entire amount, which was a painful but necessary step.” They noted that even if the film gets cleared, reclaiming screens would be arduous, as theater chains have already locked in alternative schedules.

"Potential slots like January 23 or 30 are being considered. However, with Parasakthi there was no issue because it benefited from timely Indian certification", they pointed out.

On a global scale, trade analysts estimate that refunds totalled a staggering Rs 60 crore rupees due to the delay. Yet, the makers are optimistic that the film will storm the box office, with an opening exceeding Rs 100 crore worldwide, thanks to Vijay’s huge fan base.

Financial implications

Ace producer and film historian G Dhananjayan, who also serves as treasurer of the Tamil Film Active Producers Council, provided a nuanced breakdown of the financial implications. He bifurcated revenues into theatrical and non-theatrical streams. “Non-theatrical avenues such as OTT deals, music rights, and satellite broadcasts remain robust, potentially yielding around Rs 200 crore to the film already,” Dhananjayan said.

“The nationwide discourse has only amplified the film’s visibility, mitigating any erosion in these earnings,” he added.

Theatrical prospects, however, present a mixed bag. In India, territories like Tamil Nadu, Kerala, and Karnataka could see amplified openings post-delay.

Conversely, Telugu states and North India might struggle with theatre availability for a rescheduled date. Overseas markets posed the steepest challenge: the film fetched Rs 80 crore in distribution rights, but orchestrating a swift relaunch in regions like the US, UK, and Middle East, demands months of lead time.

“An overnight release for a tentpole like this is impractical abroad,” Dhananjayan cautioned. “Distributors might face recovery shortfalls, potentially leading to producer concessions,” he said.

However, he remained positive, predicting that gains in core South Indian markets could offset losses elsewhere, preserving the film’s overall profitability amid the amplified hype.

Plight of single screens

Exhibitors, especially single-screen owners in Tamil Nadu, will feel the pinch most acutely.

December 2025 proved dismal, with scant revenues leaving many on the brink. Multiplexes weathered the storm thanks to Hollywood spectacles like Avatar: Fire and Ash and Bollywood’s highly successful Ranveer Singh starrer Dhurandhar, but rural and semi-urban theaters pinned their hopes on Jana Nayagan’s mass appeal.

Sriram from Rockfort Entertainment, a key distributor, lamented, “Single theaters were counting on this to rebound. Now, with Parasakthi performing solidly and fillers like Karthi’s Vaa Vaathiyaar, Jiiva’s Thalaivar Thambi Thalamaiyil, and Draupathi 2 stepping in, the void persists. These alternatives can’t replicate Jana Nayagan’s revenue tsunami we had expected during Pongal.”

The release date of Jana Nayagan continues to be uncertain but the production house, KVN Productions, is set to escalate the matter to the Supreme Court on Monday (January 12), pushing for the original UA 16+ certification. If the SC mandates a Revising Committee, the process could extend from one week to a month, further testing the patience of the production house. Butfor the Tamil movie trade, this wait is proving costly.