Is ‘AA23’ Shelved? LCU Writer Breaks Silence on Allu Arjun-Lokesh Kanagaraj Project

Screenwriter Rathna Kumar has officially dismissed rampant internet speculations suggesting that AA23, the highly anticipated pan-India collaboration between National Award-winning actor Allu Arjun and blockbuster director Lokesh Kanagaraj, has been shelved. The project, which was formally announced in January 2026, recently became the subject of unverified industry gossip claiming it was stuck in limbo due to severe budget constraints. However, a reassuring social media update from Kumar, a key creative mind within the Lokesh Cinematic Universe (LCU), has confirmed that pre-production remains firmly on track. Anushka Sharma NOT a Part of Allu Arjun and Lokesh Kanagaraj’s Upcoming Film ‘AA 23’ (EXCLUSIVE).

Is Lokesh Kanagaraj-Allu Arjun’s ‘AA23’ Shelved?

The rumors originated earlier this week when an unverified industry tracker on X (formerly Twitter) claimed that a major, big-budget pan-India film was facing financial friction. The post stated that the makers were actively hunting for new financiers and that the movie's future was highly uncertain.  Given the massive scale of AA23, anxious fans quickly linked the blind item to the Allu Arjun-starrer, causing the rumor to go viral across social media platforms.

Rathna Kumar effectively put the speculation to rest while celebrating the anniversary of Lokesh Kanagaraj’s hit film Vikram. Re-sharing an old post from the director, Kumar expressed his pride in being part of Kanagaraj’s cinematic world before explicitly adding, "Can't wait for #AA23".

LCU Write Rathan Kumar Celebrates 4 Years of ‘Vikram’

Please do revisit #Kaithi before getting into the world of #Vikram.

One Tweet & THE REST IS HISTORY 🔥💥.

It always feels proud to be part of this. Thank you @Dir_Lokesh for this Life time settlement 🫂♥️.

Can’t wait for #AA23 #4YearsofVikram https://t.co/MP4ls8JWBv

— Rathna kumar (@MrRathna) June 3, 2026

The direct mention served as an immediate relief to fans and stood as an informal confirmation that the project is alive and moving forward.  Scripting and Production TimelineThis is not the first time Kumar has provided positive updates regarding the film's progress. During promotional interviews in late April, the writer revealed that the creative team had already spent three consecutive weeks in intensive script discussions with Allu Arjun.

According to Kumar, AA23 is designed as a "proper pan-Indian film" with an international appeal that extends beyond regional star power.  Production houses Mythri Movie Makers and BV Works, who are backing the venture, initially announced that the movie is tentatively scheduled to go on floors in August 2026. Rocking Star Anirudh Ravichander is attached to compose the music, and an early promotional track released during the initial announcement has already garnered immense traction online.

Allu Arjun's Busy Slate

The temporary pause between the film's announcement and the commencement of principal photography is largely due to Allu Arjun's current professional commitments. Following his massive box-office success with the Pushpa franchise, the actor has shifted focus to his next high-profile project, Raaka. ‘Raaka’: Will Atlee Use a Body Double for Pregnant Deepika Padukone’s Action Sequences? Here’s What We Know.

Currently filming under the direction of Atlee, Raaka co-stars Deepika Padukone and features a visually striking, heavily stylized look for Arjun.  Once his work on Atlee's action-thriller wraps up, Allu Arjun is expected to fully transition into Lokesh Kanagaraj's universe, which marks the director's highly anticipated debut in Telugu cinema.

(The above story first appeared on LatestLY on Jun 04, 2026 11:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).