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Income Tax Department has conducted extensive raids on prominent figures in the Malayalam film industry, including actor and filmmaker Prithviraj Sukumaran. The operation, which lasted over 21 hours, targeted several properties across Kerala as part of a probe into alleged tax evasion and financial irregularities in the industry. According to a report by Kerala Kaumudi , Prithviraj’s home in Thiruvananthapuram was searched early in the morning without any prior intimation to the local police.
IT teams arrived in six vehicles and searched the premises for hours. Properties of notable producers like Antony Perumbavoor, Listin Stephen, and Anto Joseph were also raided as part of the operation. Prithviraj later issued a statement denying social media rumors that he had paid a ₹25 crore fine to the Enforcement Directorate.
He dismissed the claims made by a YouTube channel, Marunadan Malayali , as “false and defamatory” and stated he would initiate legal proceedings for civil and criminal defamation. “There is a limit to propagating absolute lies in the name of news,” he said, clarifying that he has not paid any fines. The current crackdown is part of a broader investigation that started in December 2022, focusing on unaccounted cash transactions, overseas investments, and suspected tax evasion involving top producers and distributors in the Malayalam film sector.
The latest round of action is seen in connection with Prithviraj’s recent film Empuraan , which has been at the center of a political storm. The movie faced backlash from right-wing groups for allegedly being “anti-Hindu” and “anti-Bharat” due to its depiction of the 2002 Gujarat riots and its portrayal of the judiciary and police. Following public outrage, calls for a boycott, and mounting political pressure, the filmmakers agreed to 17 voluntary cuts, including muted dialogues and changes to character names.
A day after key backers of Empuraan , including Gokulam Gopalan, were raided, Prithviraj’s house was searched, raising concerns of political motives behind the IT actions. In a separate development, the Income Tax Department reportedly issued a notice to Prithviraj seeking clarification on his remuneration for the films Kaduva (2022), Janaganamana (2022), and Gold (2022). The Kochi unit issued the notice in the last week of March 2025, alleging that while he did not take actor remuneration, he earned ₹40 crore as a co-producer.
The notice demands details about the flow of funds into his associated production company, with a deadline to respond by the end of April. Authorities have clarified that this particular notice is not linked to the controversy around Empuraan . Meanwhile, the Enforcement Directorate (ED) conducted search operations on April 4 and 5 at one location in Kozhikode and two in Chennai, targeting Empuraan co-producer Gokulam Gopalan and his company, Sree Gokulam Chits and Finance Co.
Pvt. Ltd. Over ₹1 crore in cash and documents were seized from the Chennai corporate office.
The ED suspects violations of the Foreign Exchange Management Act (FEMA) and RBI norms. Investigators found that the company collected ₹371.80 crore in cash and ₹220.
74 crore via cheques from non-resident Indians without mandatory approvals. These transactions reportedly breached Regulation 4(b) of FEMA (Permissible Capital Account Transactions, 2000) and RBI Circular No. 107 (June 11, 2015).
A portion of the funds was also disbursed in cash, violating Section 3(b) of FEMA, 1999. Gokulam Gopalan was questioned in Chennai for several hours, and ED officials confirmed that the investigation is ongoing. More revelations are expected.
Sree Gokulam Chits and Finance is part of the Gokulam Group, a South India-based conglomerate with business interests in hospitality, healthcare, education, and media. The group has yet to comment on the ongoing ED investigation. As the Malayalam film industry faces intense scrutiny, these developments highlight the growing intersection of cinema, politics, and financial regulation in India.
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