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Indian chit fund firm accused of collecting over $45 million from NRIs
“The searches led to the seizure of Rs 1.50 crore ($180,000) in cash and incriminating documents in violations of FEMA, 1999,” the ED said
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Malvika Choudhary - Mon, 07, Apr 2025
- 14:37 EDT
- 125
Gokulam Gopalan/ Enforcement Directorate / IMDb/ Wikipedia
India’s financial crime agency has accused a chit fund company of collecting over $45 million in cash from non-resident Indians (NRIs) without authorization.
Sree Gokulam Chits and Finance Co Pvt Ltd, owned by Malayalam film producer Gokulam Gopalan, is being investigated for violation of the Foreign Exchange Management Act (FEMA), 1999.
In a statement released on April 5, the Enforcement Directorate (ED) said it conducted search operations at three locations in Kerala and Tamil Nadu linked to Sree Gokulam Chits and Finance Co Pvt Ltd and seized $180,000 in cash.
Also Read: Over 1,600 NRI wives abandoned overseas: Govt data
“The searches led to the seizure of Rs 1.50 crore ($180,000) in cash and incriminating documents in violations of FEMA, 1999,” the ED said. It added that the company was “collecting subscription to chit funds from the persons resident outside India” without obtaining permission from the competent authority.
According to media reports, ED officials said the funds were received from around 15,000 NRIs and their family members since 2002. The investigation revealed that $45 million was collected in cash and $27 million via cheques from NRIs, at a time when such investments were not permitted.
“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 (RBI),” the agency stated. “Significant amounts were paid in cash to the persons resident outside India in violation of Section 3(b) of FEMA, 1999.”
According to the Indian Express, Gopalan admitted during questioning that no permission had been taken from the Registrar of Chits or any authorised state government official to collect subscriptions from NRIs. He has reportedly sought time to respond to additional discrepancies.
The company's chief information officer Janakiraman R also confirmed in his statement to ED that the firm never received official sanction to solicit NRI investments.
The probe comes amid renewed scrutiny of Gokulam Group. In 2017, the Income Tax Department uncovered $133 million in undisclosed income during raids across its offices. Gopalan was also questioned by ED in 2023 in connection with the Karuvannur cooperative bank fraud case.
The investigation in the current case is ongoing.
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