For the past few months, Ilaiyaraaja has been making headlines witdue to his spat with Prasad Studio. Last month, he vacated the studio after Madras High Court ruled in favor of the studios. On January 18, Dheena, who heads Isai Kalaignar Sangam, told the media that Ilaiyaraaja will return his awards given by state and central government as they failed to interfere in the tussle between him and Prasad Studios. However, Ilaiyaraaja issued a video statement quashing the rumours and added that his words have been twisted.
In the video, Ilaiyaraaja said, "It has come to my notice that a news has been doing the rounds about a decision of mine, which I am actually clueless about. I would like to clarify that what has been spreading is a baseless speculation.." Dheena also released a video in which he said that there was a misunderstanding and requested everyone to understand the situation. He also pointed out that Prasad Studio had insulted the awards given to Ilaiyaraaja. Ilaiyaraaja has been working at Prasad Studios for over 40 years.