Kochi: Amid the ongoing controversy over the Malayalam film ‘L2: Empuraan’ and its alleged references to the 2002 Gujarat riots, the Directorate of Enforcement (ED) has recovered ₹1.5 crore from one of the film’s producers, Gokulam Gopalan, in connection with a Foreign Exchange Management Act (FEMA) case. The agency also found that the company had collected ₹371.80 crore in cash and ₹220.74 crore via cheque from NRIs. It was also revealed that significant amounts were paid back in cash to these individuals, violating Section 3(b) of FEMA, 1999.

According to the ED, the seizure of ₹1.5 crore cash followed search operations conducted on April 4 and 5 at one location in Kerala’s Kozhikode and two locations in Chennai, Tamil Nadu. The raids were carried out at the residential and business premises of Sree Gokulam Chits and Finance Co Pvt Ltd, a firm owned by Gopalan. Officials also seized incriminating documents indicating violations of FEMA, 1999.

The ED stated that it had initiated the investigation based on specific intelligence that Sree Gokulam Chits and Finance was collecting chit fund subscriptions from persons residing outside India without obtaining permission from the competent authority.

“Further, the subscription amounts from the persons residing outside India were being collected in cash in violation of the regulations framed by the Reserve Bank of India (RBI). This led to the violation of the Regulation 4(b) of Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000 r/w Circular No. 107 dated June 11, 2015 issued by RBI,” a press release issued by ED said.

Gopalan had stepped in to co-produce Empuraan, directed by Prithviraj Sukumaran and starring Mohanlal, after Lyca Productions backed out. The film has been at the centre of a political storm, with right-wing groups accusing it of promoting anti-Hindu sentiment. In response, the filmmakers reportedly altered 17 scenes and changed the name of the villain.

ED officials maintained that their action is part of a suo motu case registered in 2022 and not related to the controversy surrounding the film. Gopalan was questioned in Kozhikode on Friday as part of the probe. Officials also said they are examining several complaints of cheating against the company to determine whether a parallel probe under the Prevention of Money Laundering Act (PMLA) is warranted.