KOCHI: Enforcement Directorate (ED) has seized Rs 1.5 crore in cash during a search operation at the offices of Gokulam Group and the residence of its Chairman, Gokulam Gopalan.
The search, which concluded on Saturday, was part of an ongoing probe into alleged violations of the Foreign Exchange Management Act (FEMA).
According to ED officials, the operation was conducted by the Kochi Zonal Office team at the Sree Gokulam Chits and Finance office and Gokulam Gopalan’s residence in Chennai, beginning on Friday.
A parallel search was also held at the group’s office in Kozhikode. In addition to the cash seizure, several incriminating documents were recovered.
In a press statement, the ED revealed that the investigation was initiated based on specific intelligence indicating that Sree Gokulam Chits and Finance was collecting subscriptions for chit funds from persons residing outside India, without proper authorisation from the competent authority. "Further, the subscription amounts were being collected in cash, in violation of regulations framed by the Reserve Bank of India (RBI)," the statement noted.
This activity constitutes a violation of Regulation 4(b) of the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, read with RBI Circular No. 107 dated June 11, 2015.
"The investigation found that the company had collected an amount of Rs. 371.80 Crore in cash from the persons resident outside India and Rs 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," stated in the press release.
ED officials confirmed that the investigation will now focus on identifying NRIs who made substantial investments in the chit-fund scheme. "We will soon begin examining the seized documents. Statements from Gokulam Gopalan and others associated with the firm will be recorded later. It will take at least two weeks to complete the assessment of the seized materials," an ED officer said.
The investigation has been ongoing since 2023, during which Gopalan has been interrogated multiple times. Gokulam Gopalan is also the producer of the recently released film Empuraan, which drew criticism from BJP activists in Kerala, leading to the trimming of several scenes. However, ED officials have clarified that the raid and ongoing investigation are solely related to FEMA violations and not connected to the film or the associated controversy.
Prithviraj faces IT Department query on earnings from 2022 films
Earlier on Saturday, the Income Tax Department has issued a notice to actor-director Prithviraj Sukumaran, director of L2: Empuraan. The notice seeks clarification on Prithviraj's earnings from three 2022 films he acted in and co-produced: Jana Gana Mana, Gold and Kadavu.
According to IT officials, the notice was system-generated — automatically triggered when discrepancies or queries are identified during routine income tax assessments. The notice was issued via email on March 29, and Prithviraj has been asked to provide his explanation by April 29.
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