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ED: Empuraan producer collected chit fund subscription illegally
The raid on Gopalan’s offices in Kerala and Tamil Nadu had aroused much interest as it happened in the wake of right-wing groups forcing the makers of the Mohan Lal-starrer L2: Empuraan to make modifications in the film.
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Gokulam Gopalan also accused of FEMA violations A day after conducting raids at multiple premises related to L2: Empuraan producer Gokulam Gopalan, the Directorate of Enforcement (ED) said Saturday the agency had initiated investigation “based on the specific intelligence gathered that his Sree Gokulam Chits and Finance, without due permission from the competent authority, were collecting subscription to chit funds from the persons residing outside India”.
The raid on Gopalan’s offices in Kerala and Tamil Nadu had aroused much interest as it happened in the wake of right-wing groups forcing the makers of the Mohan Lal-starrer L2: Empuraan to make modifications in the film. This came following allegations that there were “anti-Hindu” references in the movie to 2002 Gujarat riots.
In an official release, the ED said its investigation revealed that Gokulam Chits and Finance had collected an amount of `371.80 crore in cash from the persons resident outside India and `220.74 crore in cheque from persons resident outside India. “It was also revealed that significant amounts were paid in cash to the persons resident outside India in violation of Section 3(b) of FEMA, 1999,” he said.
The central agency said searches led to the seizure of Rs. 1.50 crore in cash and incriminating documents in violations of FEMA. Further, the subscription amounts from the persons resident outside India were being collected in cash in violation of the regulations framed by the Reserve Bank of India, leading to “the violation of the Regulation 4(b) of Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, issued by RBI”, the release said.
The provision forbids residents outside India to invest, among other things, in any business of chit funds.
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