Kochi: The Enforcement Directorate (ED) on Monday questioned Gokulam Gopalan, one of the producers of the controversial Malayalam film L2: Empuraan, in connection with an alleged foreign exchange violation involving his chit fund company, Sree Gokulam Chits and Finance Co Pvt Ltd.

After a six-hour-long questioning session at the ED’s Kochi office, Gopalan was allowed to leave. “They had some doubts, so they asked questions. They have the authority to do so, and I have responded. That is my responsibility,” Gopalan told the media following his appearance. However, he did not disclose the specific subject of the questioning.

Raids in Kochi, Kozhikode and Chennai

ED sources said Gopalan had also been questioned previously during a series of searches conducted at his firm’s corporate offices in Kozhikode and Chennai.

The agency’s Kochi unit had interrogated Gopalan last week at the company’s Kozhikode office, and simultaneous raids were carried out at Gokulam Chits & Finance’s registered office in Chennai’s Kodambakkam area and the Gokulam Grand Corporate Office in Arayidathupalam, Kozhikode.

Reports claimed that ₹1.5 crore in cash was seized during the Chennai raid. However, prior to Monday’s questioning, Gopalan denied this, saying: “We do not know why we were summoned. We have not done anything wrong. Claims of ₹1.5 crore seizure are baseless.” He reiterated that they were merely operating within the film industry and had not committed any irregularities.

ED cites overseas cash collections without authorisation

In a statement issued last week, the ED said it had collected “specific” intelligence indicating that Sree Gokulam Chits and Finance had collected chit fund subscriptions from non-resident Indians without proper authorisation.

“The subscription amounts from these people were being collected in cash in violation of the regulations framed by the Reserve Bank of India (RBI). This led to the violation of Regulation 4(b) of Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000 read with circular No 107 dated June 11, 2015 issued by the RBI,” the agency claimed.

According to the ED, the company collected ₹3,71.80 crore in cash and ₹220.74 crore via cheques from individuals residing abroad.

Controversy surrounding ‘Empuraan’

Gokulam Gopalan is a co-producer of L2: Empuraan, which is the second film in the Lucifer trilogy directed by actor Prithviraj Sukumaran and starring Malayalam superstar Mohanlal. The high-budget production, reportedly in the ₹200 crore club, became a subject of heated debate following its release on March 27 due to its critical portrayal of right-wing politics and veiled references to the 2002 Gujarat riots.

The other producers of the film are Antony Perumbavoor and A Subaskaran under the banners of Aashirvad Cinemas and Lyca Productions, respectively. Perumbavoor confirmed that over two minutes of footage were deleted following the controversy.

Gopalan, however, did not confirm whether the questioning was directly related to Empuraan.