ED Seizes Rs 1.5 Crore in Cash Amid FEMA Probe Into Gokulam Chit Fund Linked to 'Empuraan' Producer | CliqExplainer

In a significant crackdown, the Enforcement Directorate (ED) seized Rs 1.5 crore in cash during raids conducted on April 4 across multiple offices of Sree Gopalan Chit and Finance Co Ltd, also known as Gokulam Chit Fund, in Tamil Nadu and Kerala. The company, owned by AM Gopalan—better known as Gokulam Gopalan, a prominent Malayalam film producer—has been under scrutiny for alleged violations of the Foreign Exchange Management Act (FEMA) involving an estimated Rs 1,000 crore. Gopalan is among the producers of the upcoming Malayalam film L2: Empuraan, which has heightened public interest in the case.

Raids Across Multiple States and Alleged FEMA Violations

The enforcement action was part of an ongoing investigation into large-scale foreign exchange violations. Officials focused their search on suspected illicit financial transactions, including possible hawala operations and unauthorized remittances. One of the major premises raided was the company’s office located in Chennai’s Kodambakkam, a hub of the Tamil film industry.

The ED’s probe is centered on Sree Gokulam Chits’ financial activities across several Indian states, including Tamil Nadu, Kerala, Telangana, Puducherry, Maharashtra, New Delhi, Andhra Pradesh, and Haryana. Authorities suspect the firm of diverting funds through unregulated channels, violating provisions under FEMA. These developments come as a significant blow to the credibility of the financial firm, which has a large customer base and extensive operations.

Previous Investigations and Allegations of Tax Evasion

This is not the first time Sree Gokulam Chits has attracted the attention of investigative agencies. In April 2017, the Income Tax Department carried out searches at the firm’s premises across three states, uncovering major instances of tax evasion. According to officials at the time, the company had deliberately concealed substantial income over a period of five years, including recovered bad debts and accrued interest. This non-disclosure reportedly amounted to Rs 1,107 crore, potentially enabling the firm to evade significant tax liabilities.

As the current FEMA probe unfolds, the ED is expected to delve deeper into the company’s financial transactions, its sources of funding, and overseas connections. With Gokulam Gopalan’s name now in the spotlight due to his involvement in the high-profile Empuraan film project, the case is drawing considerable public and media attention.

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