Kamal Haasan, Shankar's 1996 film Indian was originally produced by AM Rathnam, meaning he holds the rights to the franchise and any sequel that would roll out with the title 'Indian' in it. Initially he is said to have struck a deal with Dil Raju for producing Indian 2 but after Dil Raju quit the project and Lyca Productions took over, AM Rathnam took a back seat and reportedly sold the title rights to Lyca. 

Under Lyca productions, Indian 2 began shooting in January 2019 but filming came to an abrupt halt after a massive crane crashed on the sets, claiming lives of three people in February 2020. With the onset of a pandemic, some very public tiffs (Kamal Haasan Vs Lyca, Shankar Vs Lyca), few cast members like Vivek, Nedumudi Venu no longer alive and others like Kajal Aggarwal turning a new chapter in life since, Lyca was left with a Rs. 180 Cr. bill and an incomplete movie worth Rs. 236 Cr. 

In 2022, some of the issues seemed sorted and it was hinted that Shankar would be returning to direct Indian 2 once he completes RC 15 with Ram Charan. Kamal Haasan confirmed the same, and Udhayanidhi Stalin's Red Giant Movies came in to the picture as well. 

"Subaskaran sir and I have been in discussions since yesterday, and I think we can reveal what it is about. We are going to restart the shoot of Indian 2 soon." - Udhayanidhi Stalin, June 6, 2022

 

"We will resume Indian 2 for sure. Director Shankar and myself are excited for the film. In fact, we are more excited than our fans. It has come out so well and will resume once Shankar completes the shooting of Ram Charan's RC 15. " - Kamal Haasan, June 2022

Latest we hear, Red Giant Movies instead of just being a distribution partner, is looking at taking over the franchise in full just like Lyca did from producer AM Rathnam. However no official announcements have been made in this regard. 

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[Update: August 24, 2022] Udhayanidhi Stalin and his company Red Giant Movies are now credited as producers alongside Lyca Productions on Indian 2. A new poster released at midnight to announce that the movie has resumed shooting, confirms this. Kamal Haasan will be joining the sets from September, 2022.