KOCHI: Malayalam actor-producer Soubin Shahir was briefly taken into custody on Monday in connection with a ₹7 crore fraud complaint filed by a United Arab Emirates-based investor in the successful film Manjummel Boys. The arrest, carried out at Maradu Police Station, was procedural—aligned with judicial orders requiring Shahir and co-producers to present themselves for questioning under Section 41A of India’s Criminal Procedure Code. Since Shahir had already secured anticipatory bail from the Kerala High Court on June 26, he was released shortly thereafter.
The complaint, lodged in April 2025, alleges that the complainant, Siraj Valiyathara Hameed of Alappuzha, invested ₹7 crore in Parava Films under a 40% profit-sharing agreement tied to Manjummel Boys, which grossed approximately ₹286 crore domestically and abroad. The investor asserts he received only ₹5.99 crore, with the remainder wrongly withheld, a key catalyst for the FIR citing cheating, criminal breach of trust, and misappropriation of funds.
Court’s Position and Police Pushback
The High Court initially granted anticipatory bail, emphasising the case’s commercial context yet acknowledging signs of criminality. It mandated limited custody for interrogation on July 7 and 8, with immediate release thereafter. Police opposed this move, urging custodial interrogation to probe financial irregularities more thoroughly. The court, however, allowed the proceedings to continue under judicial safeguards.
Police reports further allege that production costs were inflated from ₹18.65 crore to ₹22 crore, while earnings were shifted through undisclosed channels, including profits from dubbed versions and overseas rights, bypassing the complainant.
Industry Reforms and Investor Trust
Investor Confidence Shaken
Industry insiders say the case starkly highlights the informal financial arrangements prevalent in Malayalam cinema. Without legally binding documentation, producers and investors tread a fine line between collaboration and potential legal entanglement. Cases like this could erode investor faith in film financing and discourage future backing.
Toward Transparent Production Practices
Legal experts suggest film financing must adopt formal compliance measures, including detailed profit declarations, escrowed investor funds, and regular audits, to shield investors and creators alike. The Madhya Pradesh Registrar of Films now recommends mandatory financial disclosure and enforceable contracts before production begins.
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What Lies Ahead?
The Maradu police investigation continues, with forensic audits of Parava Films’ financial records, scrutinising account logs, investment inflows, and profit distribution channels. While bail allows Shahir and others to operate freely during proceedings, the broader film community watches closely. The case may set a legal benchmark for enforcing accountability in India’s regional cinema sector.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.