Writer, director R. Ajay Gnanamuthu made his debut with a popular horror hit titled Demonte Colony (2015). Actor Arulnithi played the lead role of Srinivasan aka 'Sirni' in the movie, who dies in the climax but takes the spiritual form of 'a ghost'.

Ajay Gnanamuthu and Arunithi have reunited on the direct sequel to their hit titled Demonte Colony 2. A trailer of the film's part 2 suggests that those mourning Srini's demise realize he has taken a spirit form, and find out about the happenings of the first movie. How Srini's spirt is freed from the clutches of the evil world it is stuck in is what seems to form Demonte Colony 2. 

Also starring Priya Bhavani Shankar, Arunpandian, Bigg Boss Tamil 7 winner Archana Ravichandran among others, Demonte Colony 2 produced by BTG Universal, White Nights Entertainment and Gnanamuthu Pattarai is currently eyeing April 12, 2024 for its release date. An official confirmation on Demonte Colony 2's Tamil New Year release plans however awaits.