Mumbai | Filmmaker Ram Gopal Varma is set to return to the crime and gangster genre with "Police Company", an action-crime drama inspired by true events, with actor Harshvardhan Rane playing Mumbai's renowned encounter specialist Daya Nayak.

Varma, whose films such as "Satya", "Company" and "Sarkar" have explored the intersections of crime, politics and law enforcement, is returning to familiar territory with the new project, the makers announced on Tuesday.

The film, which will go on floors later this month, is backed by Bhushan Kumar's T-Series in association with RGV Company Production.

"Police Company" marks the first collaboration between Kumar and Varma and will explore a chapter in Mumbai's policing history when the underworld had expanded its influence across the city and beyond.

According to the makers, between 1997 and 2004, a special police squad was formed to counter the growing underworld threat and went on to eliminate nearly 300 gangsters. The film will draw inspiration from this period with Daya Nayak at the centre of its story.

Nayak became one of India's most talked-about encounter specialists through his operations against members of the Mumbai underworld, eventually becoming a prominent figure in the city's policing folklore.

"Police Company" is expected to explore the pressures and moral dilemmas faced by police officers working on the frontlines of Mumbai's battle against organised crime.