Filmmaker Vamshi Paidipally, who has announced that he is teaming up with superstar Mahesh Babu for a yet-untitled Telugu project next, has been allegedly accused of dishonoring an agreement to make a film for PVP productions.

Producer Prasad V Potluri, in his compliant to Producer's Council, claims that Vamshi has breached their contract and is now making his next film with other producers.

Reportedly, Potluri is planning to press charges in the court against Vamshi, who had directed last year's bilingual drama "Oopiri" in his production.

"Vamshi is aware of the allegations and he's not making any comments because they are baseless. PVP claims that they incurred losses of Rs. 20 crore on 'Oopiri', as the budget shot up to Rs. 70 crore which is not true. 'Oopiri' is a very special film for Vamshi, and they are simply trying the malign it," a source close to Paidipally told IANS.

Vamshi, who was unavailable for comment, will go on to direct Mahesh Babu for yet to titled film that will be produced by Ashwini Dutt and Dil Raju. It will be Mahesh Babu's 25th film.

"There'll be no change of plans in Mahesh's project. More information regarding the commencement of shoot will be made official by the production team soon," the source added.