Sat Apr 05 09:44:24 UTC 2025: ## ED Seizes ₹1.5 Crore from Film Producer in FEMA Violation Probe

**Kozhikode, April 5, 2025** – The Enforcement Directorate (ED) launched a probe into alleged violations of the Foreign Exchange Management Act (FEMA) by Sree Gokulam Chits and Finance Co Private Ltd., resulting in the seizure of ₹1.5 crore in cash and incriminating documents from the company and the residence of Gokulam Gopalan, producer of the recently released film *L2: Empuraan*.

Raids conducted on April 4th and 5th across Kozhikode and Chennai uncovered evidence suggesting the company illegally collected subscriptions from individuals residing outside India. The ED alleges that the company collected ₹371.8 crore in cash and ₹220.74 crore in cheques from these individuals, circumventing RBI regulations on foreign exchange transactions. These actions are said to violate Regulation 4(b) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, and Section 3(b) of FEMA, 1999.

The investigation was triggered by intelligence reports indicating the company’s unauthorized collection of chit fund subscriptions from overseas. Mr. Gopalan was questioned by ED officials during the searches. The ED’s statement highlights that significant cash payments were made to individuals abroad, further violating FEMA regulations. The investigation is ongoing. This development follows *L2: Empuraan’s* recent voluntary cuts made in response to right-wing criticism.

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