Kochi: ED Recovers ₹1.5 Crore from Film Producer Amid Controversy Over ‘L2: Empuraan’
Amid the ongoing controversy surrounding the Malayalam film ‘L2: Empuraan’ and its alleged references to the 2002 Gujarat riots, the Directorate of Enforcement (ED) has made a significant recovery of ₹1.5 crore from one of the film’s producers, Gokulam Gopalan. This action is part of an investigation linked to a Foreign Exchange Management Act (FEMA) case.
According to reports, the ED discovered that Gopalan’s company had collected ₹371.80 crore in cash and ₹220.74 crore via cheque from Non-Resident Indians (NRIs). It was found that substantial amounts were paid back to these individuals in cash, contravening Section 3(b) of FEMA, 1999.
The seizure of ₹1.5 crore in cash followed search operations conducted on April 4 and 5 at one location in Kozhikode, Kerala, and two locations in Chennai, Tamil Nadu. The ED raided the residential and business premises of Sree Gokulam Chits and Finance Co Pvt Ltd, a company owned by Gopalan. During these searches, officials also seized incriminating documents that indicated violations of FEMA regulations.
The ED initiated the investigation based on specific intelligence that Sree Gokulam Chits and Finance was collecting chit fund subscriptions from individuals residing outside India without the necessary permissions. The subscription amounts were reportedly being collected in cash, violating regulations set forth by the Reserve Bank of India (RBI). These actions led to violations of Regulation 4(b) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, along with Circular No. 107 dated June 11, 2015 issued by RBI.
Gokalan stepped in to co-produce Empuraan, directed by Prithviraj Sukumaran and featuring Mohanlal, after Lyca Productions withdrew its support. The film has been at the center of political debates, with right-wing groups accusing it of promoting anti-Hindu sentiment. In light of these accusations, filmmakers made alterations to 17 scenes and changed the name of the film’s villain.
ED officials clarified that their actions are part of a suo motu case registered in 2022 and are not directly related to the ongoing controversy surrounding the film. Gopalan was questioned in Kozhikode on Friday as part of the investigation. Additionally, officials are reviewing several complaints of cheating against the company to determine if a parallel investigation under the Prevention of Money Laundering Act (PMLA) is necessary.