Reports started floating around yesterday stating iconic Tamil filmmaker, the Late. K Balachander's prestigious production house, Kavithalaya Productions and his house were going to be sold off in an auction. The news gained momentum after an advertisement was carried out by a bank regarding the same.

Having said that, a clarification has now come out from Kavithalaya Productions which states the production house had indeed in the past borrowed a loan from the bank back in 2010 and a sizable amount which includes the principle and the interest too were paid off. Meanwhile, discussions are ongoing for a one-time settlement on the remainder amount to be paid after the firm had forayed into digital production in 2015.

Kavithalaya Productions has further stated they are thankful to all those who had reached out to them to know the true story and for showering them with love, adulation and genuine concern in the past two days.

It must be noted the illustrious firm has in the past made nine films with Rajinikanth, three with Kamal Haasan and, one each with Vijay and Vikram including landing three National Awards over the years.