Washington: A leaked US diplomatic cable has said that Bollywood welcomed funding from gangsters and politicians, known in India as "black money."
While there is no direct reference of Dawood Ibrahim which allegedly financed a number of movies, the cable said that in recent decades, the Bollywood film industry has been
associated with the notorious Mumbai underworld, at the nexus of gangsters, money, and politics.
According to Jehil Thakkar, Head of Media and Entertainment for (KPMG), this association stemmed from the financing needs of the industry; until 2000, by government fiat, the film industry was ineligible for bank credit, private equity, and other means of legitimate commercial financing.
"As a consequence, films were financed by ad hoc collections of investors, many of whom were from the construction and trade industries, who charged interest rates as high as 60-100 per cent.
"The industry also welcomed funds from gangsters and politicians, looking for ways to launder their ill-gotten gains, known in India as "black money", said the cable issued by the US Consulate in Mumbai, released by WikiLeaks.
After the government added the film industry to the list of legitimate industries, the corporatisation of Bollywood - and the wider entertainment industry - began," the cable said.
The WikiLeaks said the US officials also concluded that a standard movie from the Bollywood is unlikely to appeal to the Western audience.
"Although visibility for the Indian film industry has increased vis-a-vis movies like `Slumdog Millionaire`, the reality is the industry is just beginning to corporatise and understand the Western market," says the cable issued by the US Consulate in Mumbai.
"Though many players are attracted to the glamour of the industry, the standard Indian movie rarely makes a profit and is unlikely ever to appeal to Western audiences," said the cable dated February 1, 2010 and released by WikiLeaks on August 30.
"The film industry is well-aware of this trend, and seeks to find other avenues for entering the Western market and improve their own profitability within the South Asian diaspora," it said.
The US Government has neither confirmed nor denied the authenticity of these cables.
PTI
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Cookies Setting
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device and the processing of information obtained via those cookies (including about your preferences, device and online activity) by us and our commercial partners to enhance site navigation, personalise ads, analyze site usage, and assist in our marketing efforts. More information can be found in our Cookies and Privacy Policy. You can amend your cookie settings to reject non-essential cookies by clicking Cookie Settings below.
Manage Consent Preferences
Strictly Necessary Cookies
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work or you may not be able to login.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They are also used to limit the number of times you see an advert as well as help measure the effectiveness of an advertising campaign. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we may not know when you have visited our site, and may not be able to monitor its performance.