ED Cracks Down on Chit Fund Scandal Linked to Blockbuster's Producer

The Enforcement Directorate seized Rs 1.5 crore during a search of a chit fund company owned by Gokulam Gopalan, a producer of the film 'L2: Empuraan', for alleged foreign exchange law violations. The company was accused of illegally collecting chit fund subscriptions from individuals outside India.

The Enforcement Directorate (ED) has taken significant action by seizing Rs 1.5 crore in cash during a detailed investigation into the premises of a chit fund company owned by Gokulam Gopalan, a producer behind the acclaimed Malayalam movie 'L2: Empuraan'. This move comes in response to alleged violations under the Foreign Exchange Management Act (FEMA).

The ED conducted searches across one location in Kozhikode, Kerala, and two in Chennai, Tamil Nadu, targeting the residential and business premises of Sree Gokulam Chits and Finance Co. Pvt. Ltd. They concluded their operations on Saturday, discovering not only substantial cash but also incriminating documents related to FEMA infractions.

This investigation is set against the backdrop of the film's controversial release, which stirred public debate with its critique of right-wing politics. 'L2: Empuraan', perceived as one of the most expensive productions in Malayalam cinema, had a tumultuous release, leading to portions of the film being removed post-release. Meanwhile, the ED alleges that the company collected illegal subscriptions from overseas without RBI authorization.

(With inputs from agencies.)