H Vinoth's Jana Nayagan was supposed to release in January but remains pending with the Central Board of Film Certification (CBFC) six months later.
Vijay has asked KVN Productions to refund distributors who have waited months for the film's release, citing the financial strain the delay has put on the makers.
Producer Mohan Suprith confirmed the news, stating that the decision came from Vijay himself and that the producers felt it was unfair to keep distributors in the loop while waiting for a possible release date.
The delay has caused significant financial damage to Jana Nayagan makers and distributors, with trade analyst Ramesh Bala estimating that the box office could have lost ₹100 crore due to the film's delay.
The producers initially claimed that ₹500 crore was at stake for the film, which was slated for release on 5000 screens worldwide, but the CBFC questioned their claim of investing crores and announcing a release date without clearance.
Amazon Prime Video terminated its agreement with the producers due to the film's delay, and 15 individuals have been arrested in connection with the leak of the film online in HD print in April.
