The notice, served in the last week of March by the Kochi unit, questions the flow of funds into the production company associated with Prithviraj and directs the actor to submit his response by the end of April.
Published Apr 05, 2025 | 3:37 PM ⚊ Updated Apr 05, 2025 | 3:37 PM
Prithviraj Sukumaran. (Instagram)
Amid the ongoing controversy over his last release, Empuraan, news has surfaced that the Income Tax department has allegedly issued a notice to actor-director-producer Prithviraj Sukumaran, seeking clarification regarding his remuneration for three films—Kaduva (2022), Janaganamana (2022), and Gold (2022).
The department is of the findings that while Prithviraj did not receive any remuneration as an actor in these projects, the department has reportedly found that he earned around ₹40 crore as a co-producer.
The notice, served in the last week of March by the Kochi unit, questions the flow of funds into the production company associated with Prithviraj and directs the actor to submit his response by the end of April.
While the news of the notices served surfaced a day after the ED raided Empuraan producer’s offices, officials clarified that the move is unrelated to the ongoing controversy surrounding the film.
The inquiry is part of a broader investigation that began in December 2022 into financial irregularities in the Malayalam film industry.
As part of that probe, the I-T department had conducted raids at multiple locations linked to prominent producers, including Antony Perumbavoor, Anto Joseph, and Listin Stephen, with a focus on suspected tax evasion, unaccounted cash transactions, and overseas investments.
Prithviraj’s premises were also among those searched then. The latest notice appears to be a follow-up move, zeroing in on financial details related to select co-produced films.
Empuraan had drawn flak from right-wing groups over certain scenes, prompting the filmmakers to implement “voluntary cuts” to ease the backlash.
Empuraan co-producer Gokulam Gopalan was questioned for hours in Chennai over alleged violations of the Foreign Exchange Management Act (FEMA).
In the case of Gokulam Gopalan, the ED found discrepancies and prima facie violations of RBI regulations and the FEMA Act. It’s also said that they seized more than ₹one crore and some documents from the Sree Gokulam Chits and Finance Co. Private Limited’s corporate office, Chennai.
The ED’s Cochin Zonal Office carried out search operations on 4 and 5 April at one location in Kozhikode, Kerala, and two locations in Chennai, Tamil Nadu, targeting the residential and business premises of the company.
The ED stated that the action was based on specific intelligence indicating that the company was illegally collecting chit fund subscriptions from persons residing outside India without the necessary permissions from the competent authority.
Cash seized by the ED from Sree Gokulam Chits and Finance Co Pvt Ltd. (Supplied)
The agency revealed that the funds were being collected in blatant violation of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, specifically Regulation 4(b), as well as the RBI Circular No. 107 dated June 11, 2015.
Investigators found that ₹371.80 crore had been collected in cash and ₹220.74 crore via cheques from persons residing outside India.
Further, the ED noted that a significant portion of the funds was also disbursed in cash to non-residents, thereby contravening Section 3(b) of FEMA, 1999, which prohibits dealing in foreign exchange and foreign security not undertaken through authorized persons.
ED officials confirmed that the investigation is ongoing and more revelations are expected in the coming days.
Sree Gokulam Chits and Finance Co Pvt Ltd is part of the Gokulam Group, a diversified conglomerate based in South India with interests spanning hospitality, education, healthcare, and media. The group has yet to issue an official statement regarding the ED action.
(Edited by Sumavarsha, with inputs from Dileep V Kumar)
