Kodali Venkateswara Rao, the ex-head at the Telugu Film Producers' Council, is alleged to have gobbled up funds to the tune of Rs. 1 crore. Worse still, he was a benefactor of Associated Producers of Telugu Limited Liability Company, considered a rival producers' body. This body made money to the tune of Rs. 28 crore, thanks to Kodali's shenanigans.

The one in the dock is accused of fraudulently channelizing ad revenue to APTLLP, revenue that should have rightfully accrued to TFPC.

As per the Council, Kodali had entered into a secret deal with a YouTube channel in diverting the ad revenue. Since his exit, the Council's new leadership has rejigged the deal to the Council's ultimate benefit.

Legal action has been initiated against Kodali.