The Enforcement Directorate has searched the Tamil Nadu and Kerala offices of Gokul Chit Fund, a financial services firm that is one of the producers of Malayalam movie 'L2: Empuraan'.
The searches - linked to an alleged Rs 1,000 crore foreign exchange violations case - began early Friday at several places, including Gokul Chit Funds' office in Chennai's Kodambakkam.
The agency is also analysing some allegations of cheating for possible further inquiries.
The searches come amid controversy over the movie which released last month and refers, indirectly, to the 2002 Gujarat riots and examines misuse of central investigative agencies.
Last week right-wing groups staged violent protests at theatres, after which the production team said it would accept 17 fresh cuts, including removing scenes depicting violence against women and riots, renaming the antagonist - Baba Bajrangi, and muting certain dialogues.
READ | 17 Cuts Planned In 'Empuraan' After Gujarat Riots References Spark Row
Gokul Chit Funds Chairman Gokulam Gopalan said then 'Empuraan' had already cleared the censor, but additional cuts were being made to not hurt the sentiments of some people.
The revised version has now been released in theatres.
READ | 2 Minutes Removed From L2: Empuraan After "Joint Decision"
Overall the movie has grossed more than Rs 80 crore in its first week.
The protests against the film - which stars Mohanlal and was directed by Prithviraj Sukumaran - included accusations of promoting an 'anti-Hindu agenda'. The BJP's new Kerala unit chief, ex-MP Rajeev Chandrasekhar, would not comment on the movie but said he would not watch it.
Mr Chandrasekhar also accused the film's makers of "distorting facts".
The BJP's relative silence comes as the party - which has struggled for traction in the state, where its muscular nationalism does not resonate - preps for next year's Assembly election.
READ | Mohanlal's 'Empuraan' Sparks Congress-BJP Row In Poll-Bound Kerala
"The film will go its way and the party will do its work. The party will not be affected by any film. Activists have the right to express their views and let the audience decide if it is good or bad," P Sudheer, the General Secretary of the BJP's state unit, had said.
However, the ruling Left alliance and the Congress, the state's the main opposition party, have become unlikely allies on this topic, praising the portrayal of "villainous" right-wing politics.
The Congress' Kerala youth unit chief and the Palakkad MLA Rahul Mamkoottathil praised 'Empuraan' as a "pan-Indian film" and said the hate campaign against Mohanlal and Mr Sukumaran, is unacceptable in any way.
The party's state unit posted a message on X and took a cheeky swipe at critics, "People who never stepped foot on Kerala's soil were saying a 'c-grade propaganda movie' they released tax-free was 'the real Kerala story'..."
The reference was to 'The Kerala Story', a 2023 movie on forced conversions (to Islam) and the radicalisation of women that sparked a massive political row. Kerala Chief Minister Pinarayi Vijayan has slammed the film makers, calling it "propaganda" by the "Sangh parivar".
READ | "Violation Of Rights": Pinarayi Vijayan On 'L2: Empuraan' Row
For the ruling Left Democratic Front, Chief Minister Pinarayi Vijayan voiced his support and accused the 'Sangh parivar' of fostering an "atmosphere of fear" over the film.
"This atmosphere of fear created by the 'Sangh parivar' is worrying. The situation where communal elements are able to devalue a work of art and vilify artists just because they have taken a stand against communalism and portrayed its terror is an abomination to democracy," he said on Facebook.
Meanwhile, Mohanlal apologised on Facebook and expressed regret for "emotional distress".
"I understand certain socio-political themes introduced in the making of 'Empuraan'... caused considerable mental distress among some of my loving fans. As an artist, it is my duty to ensure none of my films harbour hatred to any political movement, ideology, or religious group," he wrote.
"We, the 'Empuraan' team and I, sincerely regret the distress caused... We acknowledge our collective responsibility and have decided to remove the objectionable content from the film," he added.
With input from agencies
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