ED seizes ₹1.5 crore, documents in ‘FEMA violation’ during raids at Empuraan producer Gokulam Gopalan’s premises

ED says searches were conducted based on specific intelligence that Gokulam Gopalan’s company was collecting subscriptions to chit funds from people outside India ‘without due permission from competent authority’

The Directorate of Enforcement (ED) has claimed to have seized ₹1.5 crore in cash and “incriminating documents” in violation of the Foreign Exchange Management Act (FEMA), 1999 following searches conducted on the residential and office premises of Gokulam Gopalan, a producer of the recently released Mohanlal-starrer L2: Empuraan.

A release from the Kochi zonal office of the ED on Saturday (April 5, 2025) said the searches were held on April 4 and 5 at one location in Kozhikode, Kerala, and at two locations in Chennai, Tamil Nadu, owned by Sree Gokulam Chits and Finance Co Private Ltd.

The release said the investigation was initiated based on the specific intelligence gathered that the company, “without due permission from the competent authority”, was collecting subscriptions to chit funds from people residing outside India. Also, the subscription amounts from them 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,” the agency claimed.

The investigation reportedly revealed that the company had collected ₹371.8 crore in cash and ₹220.74 crore in cheque from people residing outside India. It was also noticed that significant amounts were paid in cash to such people in violation of Section 3(b) of FEMA, 1999. Further investigation is under way, the release added.

According to sources, Mr. Gopalan was also questioned by the ED officials at Kozhikode during the searches.

L2: Empuraan recently underwent 24 “voluntary cuts” following sustained right-wing backlash after its release on March 27.

Published - April 05, 2025 03:14 pm IST