Overview

• The Thalayolaparambu police registered an FIR on July 16 under IPC Sections 406 (criminal breach of trust) and 420 (cheating) based on a complaint by co-producer P. S. Shamnas.
• Shamnas claims that after the failure of Mahaveeryar, Pauly promised him ₹95 lakh and a co-producer role in Action Hero Biju 2, prompting a ₹1.9 crore investment.
• He alleges Pauly and Shine concealed his company’s role to strike a ₹5 crore overseas distribution deal with a Dubai firm and secure a ₹2 crore advance.
• Pauly and Shine deny any wrongdoing, noting the dispute has been under court-ordered arbitration with a gag order since June 28.
• They have pledged to challenge the FIR in court and pursue legal action as the police investigation continues.