ED Searches At Empuraan Producer’s: Rs 1.5 Cr Seized
The Enforcement Directorate (ED) has seized Rs 1.5 crore in cash following searches at the residential and business premises of Sree Gokulam Chits and Finance Co. Pvt. Ltd., a company owned by Gokulam Gopalan, one of the producers of the Malayalam film L2: Empuraan. The raids were conducted under the provisions of the Foreign Exchange Management Act (FEMA), 1999, at locations in Kozhikode, Kerala, and Chennai, Tamil Nadu.
The ED initiated the investigation based on specific intelligence indicating that Sree Gokulam Chits and Finance Co. Pvt. Ltd. was collecting subscriptions to chit funds from individuals residing outside India without the requisite permission from the competent authority. The company allegedly collected Rs 371.80 crore in cash and Rs 220.74 crore via cheques from non-resident individuals, actions that contravene FEMA regulations and Reserve Bank of India (RBI) guidelines.
In a press release, the ED stated, “Collecting cash from persons resident outside India is a violation of the regulations framed by the Reserve Bank of India (RBI). This led to the violation of Regulation 4(b) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations.” The agency also noted that significant amounts were paid in cash to non-resident individuals, further violating Section 3(b) of FEMA, 1999.
The searches, which began on April 4 and concluded on April 5, resulted in the seizure of Rs 1.5 crore in cash and several incriminating documents. The ED’s investigation is ongoing, focusing on potential contraventions of FEMA, including illicit remittances and hawala transactions.
This development comes in the wake of controversy surrounding L2: Empuraan, the second instalment of the “Lucifer” trilogy. The film, released on March 27, has been a topic of intense debate due to its critique of right-wing politics and indirect references to the 2002 Gujarat riots. Following the controversy, the filmmakers made changes to the movie, with Antony Perumbavoor, one of the producers, confirming the removal of a little over two minutes of scenes.
Gokulam Gopalan, besides his involvement in the film industry, is a prominent businessman with interests spanning various sectors, including finance, hospitality, and healthcare. His company, Sree Gokulam Chits and Finance Co. Pvt. Ltd., operates in multiple states across India, including Tamil Nadu, Kerala, Telangana, Puducherry, Maharashtra, New Delhi, Andhra Pradesh, and Haryana.
This is not the first time Sree Gokulam Chits has come under scrutiny. In April 2017, the Income Tax Department searched the company’s premises in three states for alleged tax evasion. Officials claimed that the company had intentionally concealed significant amounts of income from its records, including recovered bad debts and interest income, amounting to Rs 1,107 crore over five years.
