Mumbai, June 23: A defamation suit of Rs 250 crore has been filed against Salman Khan by the producer of his 2010 film, Veer.

Vijay Galani has accused the actor of causing him "financial loss, mental agony and harassment". The suit was filed yesterday after legal notices sent by Galani to Salman allegedly went unheeded.

The actor is out on bail in the 2002 hit-and-run case.

Sources said the dispute was over the payment of Rs 15 crore promised by the producer to Salman if Veer made profits. While Galani claims the film bombed, Salman believes that Veer made enough money through the sale of broadcasting and music rights.

A Salman aide said: "We approached the Cine TV Artists' Association and the Federation of Western India Cine Employees. Both asked Galani to pay up. When he did not, the two bodies issued a non-cooperation letter against him."

Galani, PTI said, approached the civil court against Salman and the two associations. "The court passed an order in my favour. Last month, I issued a legal notice to Salman," he said.

The producer has sought Rs 200 crore as compensation for defamation and Rs 50 crore for financial loss.