The Enforcement Directorate (ED) has seized ₹1.5 crore in cash from Gokulam Gopalan, a prominent film producer and the owner of Sree Gokulam Chits and Finance Co Pvt Ltd, during a recent raid in connection with alleged violations of the Foreign Exchange Management Act (FEMA), 1999. The investigation, based on specific intelligence, revealed that the company had illegally collected ₹371.80 crore in cash and ₹220.74 crore via cheque from non-resident Indians (NRIs), a practice that violates FEMA regulations. Notably, the firm is accused of returning large sums in cash to NRI investors, breaching Section 3(b) of the Act. The raids were conducted on April 4 and 5 in Kozhikode, Kerala and Chennai, Tamil Nadu, during which incriminating documents were also recovered.
According to the ED, the company was accepting chit fund payments from NRIs without RBI approval, a violation of Regulation 4(b) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000. Additionally, this contravenes the RBI Circular No. 107 dated June 11, 2015. The agency emphasized that these actions are part of a suo motu case initiated in 2022, unrelated to the ongoing controversy surrounding the Malayalam film ‘L2: Empuraan’, which Gopalan co-produces. This clarification came amid public speculation linking the ED’s move to the film’s alleged political themes.
‘Empuraan’, directed by Prithviraj Sukumaran and starring Mohanlal, has been under fire for its alleged references to the 2002 Gujarat riots, prompting accusations of anti-Hindu messaging from right-wing groups. Reports suggest the filmmakers were compelled to alter 17 scenes and change the antagonist’s name due to mounting pressure. Meanwhile, Gopalan was questioned in Kozhikode as the ED continues to scrutinize financial irregularities. The agency is also looking into complaints of fraud filed against the firm, with a possibility of invoking the Prevention of Money Laundering Act (PMLA) if deeper malpractices are uncovered.
