On Thursday, the Income Tax department raided the Kochi office of Parava Films, a production company owned by Malayalam actor Soubin Shahir, in connection with allegations of black money transactions. The investigation also extends to Dream Big Productions, run by Binesh, and the financial dealings associated with the alleged funds he received.
This raid follows a previous investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). The ED had examined suspected money laundering activities and disputes over profit-sharing at Parava Films. Earlier in June, the ED flagged concerns about the use of unaccounted money and inflated box office revenues in the Malayalam film industry, questioning Soubin Shahir, Babu Shahir, and Shawn Antony as part of the probe.
Earlier, the Enforcement Directorate (ED) had received complaints about money laundering in the film industry. Following this, the ED initiated investigations focused on film production companies. It was during this stage that Siraj Valiyaveettil from Arur in Alappuzha filed a complaint against Soubin.
In his complaint, Siraj alleged that the individuals associated with Parava Films, the production company behind the film, had cheated him by not paying him any profit share or return on investment. Further investigation by the police uncovered serious financial fraud, which led to the submission of a report to the High Court. This report formed the basis for the ED's intervention.
Following the filing of Siraj's complaint, the police recorded his statement and subsequently collected relevant bank records. These records revealed that the film's producers had engaged in financial fraud. The police filed a case with charges of criminal conspiracy, breach of trust and forgery.
Siraj had invested ₹7 crore in the film. The producers initially claimed that the total production cost of the film was ₹22 crore. However, the actual production cost was only ₹18.65 crore. The producers misled Siraj, claiming that the first schedule of shooting was completed before filming even began. Despite no money being invested by the producers, Siraj was not refunded his investment.
The investigation report stated that Parava Films orchestrated a well-planned fraud.The producers had promised Siraj a 40% profit share. However, despite the film being a major hit, they failed to pay him a single rupee. The investigation report confirmed this based on the bank records. Siraj claimed that he incurred a loss of approximately ₹47 crore.