The Enforcement Directorate (ED) is expected to freeze the bank accounts of the producers and distributors of the Malayalam movie Manjummal Boys in the case of money laundering by exaggerating the movie’s ticket collection income. ED sought legal advice for this.
In connection with this case, the ED will collect financial details of all blockbuster Malayalam movies in Kerala in the last five years. Information about the cost of film production may also be collected.
Recently, ED questioned Malayalam actor/producer Soubin Shahir in the Manjummal Boys money laundering case. The interrogation took place at the ED’s office in Kochi. Shawn Antony, another producer of the film, was questioned earlier.
The ED had earlier received a complaint that black money was being invested in the Malayalam movie industry. Then, the ED conducted an investigation focusing on film production companies.
At this stage, Valiyathara Siraj, a native of Alappuzha Aroor, filed a complaint against the makers of Manjummal Boys. He alleged that Soubin Shahir, his father Babu Shahir, and his partner Shawn Antony had cheated him by not paying any profit or return his investment. (The elder Shahir has been in the Malayalam movie industry since the 1980s, and Antony acts in movies.)
Siraj claimed that Parava Films LLP (owned by the petitioners) contacted him to invest in producing Manjummel Boys. By a deal made on 30 November 2022, he made many payments of Rs 7cr. Furthermore, it was claimed that Shahir & Co. paid neither the agreed-upon profit nor the investment despite the film becoming a ‘hit.’
In the subsequent investigation, the police found that a severe financial fraud had been committed and submitted this report to the High Court. ED’s intervention is the background of the police report.
Siraj was made to believe that the first schedule was completed before the film’s shooting started. The producers claim that Rs 22 crore has been spent on the film, but police found the production cost is only Rs 18.65 crore. The report submitted by the police in the High Court also states that Parava Films has not returned any money to the complainant.
After recording Siraj’s statement, the police collected the related bank documents. Allegedly, the producers had offered 40 per cent profit to the complainant. According to the investigation report, Parava Films committed deliberate fraud. Siraj alleges that there was a loss of around 47 crores.
Shahir & Antony informed the court that Siraj demanded a considerable amount based on online media reports that the movie had earned Rs 250 crore. Actors and technicians have to be paid. It was also explained in the bail petition that after calculating the income and expenses of the film, they would pay the profit share as per the agreement.
Considering this, the High Court stopped their arrest earlier.
Earlier this month, senior lawyers representing Parava Films withdrew from the case because the petitioners did not cooperate with the settlement proposals.
As per a Times of India report, Sr. Shahir claimed that Siraj had broken the contract terms by neglecting to make investments on time, which resulted in significant losses for the petitioner’s business as the shoot schedules were thrown off. Accordingly, he said, Siraj has no legal right to make money off the film.
The underworld uses the movie industry to launder their ill-gotten wealth (black money) from drug/gold smuggling and corruption. Thus, some movie producers in Kerala claim their films are megahits. Inflated collections turn black money into white. Even the commoner suspects such claims since the movie halls are vacant.
The suspense continues.
