ED Raids ‘Empuraan’ Producer Gokulam Gopalan’s Offices Over Rs 1,000 Crore FEMA Violations
CNN-News18 has learnt that funds may have been diverted to finance ‘L2: Empuraan’, the Malayalam film co-produced by Gokulam Gopalan, as part of a suspected money laundering operation
Film ‘Empuraan’ producer Gokulam Gopalan, a prominent figure in the financial and entertainment sectors, is once again under serious scrutiny. CNN-News18 has learnt that Gopalan and his company, Sree Gopalan Chit and Finance Co. Ltd, are at the centre of multiple investigations for alleged money laundering and large-scale financial misconduct.
The Enforcement Directorate (ED) is currently probing the company for alleged breaches of the Foreign Exchange Management Act (FEMA), involving suspected unauthorised NRI transactions worth nearly Rs 1,000 crore. Sources reveal that over Rs 350 crore was invested in cash by Non-Resident Indians (NRIs) through informal channels, in direct violation of FEMA guidelines regulating foreign exchange transactions.
related stories
- Empuraan Producer Raided By ED In Chennai Amid Controversy Surrounding Mohanlal's Film
- Empuraan Producer To Be Questioned By ED Again Amid Controversy Surrounding Mohanlal's Film
- ED Raids Empuraan Producer Gokulam Gopalan Over Alleged Foreign Exchange Violation
- Kochi Fake Loan App Scam Part Of China’s Plan To Attack India's Fintech? Exclusive From ED Sources
Further, foreign remittances to the tune of Rs 300 crore are suspected to have been illegally transferred by the group’s companies to offshore accounts without the mandatory Reserve Bank of India (RBI) approval.
CNN-News18 has also learnt that funds may have been diverted to finance L2: Empuraan, a politically controversial Malayalam film co-produced by Gokulam. Sources claim that the money laundering operation extended into entertainment ventures, using film production as a channel to park illicit funds.
On April 4, 2025, ED conducted raids across five locations in Tamil Nadu (Chennai), Kerala (Kochi), and Karnataka, seizing critical financial records and digital devices. In a major breakthrough, authorities seized Rs 1.5 crore in cash during the Chennai raids.
This is not Gokulam Gopalan’s first brush with the law. In 2017, an Income Tax raid had uncovered concealed income and undisclosed foreign investments amounting to Rs 1,107 crore across 78 branches of the company.
Adding to his legal troubles, multiple FIRs were filed in January 2025 by Perinthalmanna Police in Malappuram, Kerala, under IPC Sections 192, 193 (fabricating evidence), 463–471 (forgery of documents), 34, 35, 37 (common intention), and 120-B (criminal conspiracy), along with Sections 76 and 79 of the Chit Fund Act, 1982. The allegations include mismanagement of chit funds, fabrication of subscriber lists and financial records, failure to repay investors, and operating without mandatory RBI registration.
The ED is also conducting a PMLA investigation to examine the Proceeds of Crime (PoC) linked to cheating, forgery, and financial misappropriation. Sources say that forensic audits are underway to trace Rs 500 crore in suspected investor losses. Funds are believed to have been diverted into real estate, shell companies, and high-value assets, including films.
The company, which operates 479 branches nationwide with a reported group turnover of over Rs 7,000 crore, continues to complicate oversight. So far, over 500 complaints of non-payment of maturity amounts have been lodged, with estimated losses exceeding Rs 500 crore.
Eight individuals, including directors and auditors, have been taken into custody. ED officials are in constant coordination with the RBI and state police forces to track offshore transactions linked to the case.
- Location :
- First Published: