WikiLeaks: 'Bollywood has connections with Indian mafia'

WikiLeaks has alleged that a link exists between Hindi cinema and gangsters.

A leaked US diplomatic cable has claimed that Bollywood films have been funded through sources of illegal finance, PTI reports.

"The industry 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.

The situation is said to have arisen as the film industry was not eligible for bank loans or other methods of commercial financing until 2000.

Jehil Thakkar, Head of Media and Entertainment for KPMG, explained: "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 to 100%."

The gangster film genre has seen a recent revival in popularity through productions such as Shootout at Lokhandwala and Once Upon A Time In Mumbaai.

A number of Bollywood actors, including Shah Rukh Khan and Preity Zinta, spoke out against the underworld after receiving death threats from known Indian mafia groups earlier in their careers.

Zinta was presented with a bravery award after going public with the extortion threats in 2003.

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