KOTTAYAM, India, July 19, 2025 – Malayalam film star Nivin Pauly and acclaimed director Abrid Shine have been booked in a financial fraud case following a complaint lodged by P.S. Shamnas, a resident of Thalayolaparambu, Kerala. The First Information Report, filed on July 16, 2025, at Thalayolaparambu police station, invokes Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code, as well as Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita.
The complainant, Shamnas, a co-producer of the 2022 film Mahaveeryar, alleges that Pauly and Shine misled him into investing approximately ₹1.9 crore (about $221,150 USD) in their upcoming project, Action Hero Biju 2. Shamnas claims that after Mahaveeryar, a courtroom drama blending time travel and fantasy elements, failed commercially, Pauly promised to compensate him with ₹95 lakh (approximately $110,560 USD). Additionally, Pauly allegedly offered Shamnas a partnership in Action Hero Biju 2, directed by Shine, prompting him to fund the project under his production company, Indian Movie Makers.
According to the complaint, the film was officially registered under Indian Movie Makers, with documentation submitted to the Kerala Film Chamber of Commerce. However, Shamnas alleges that Pauly and Shine concealed this arrangement and entered into a ₹5 crore (approximately $581,600 USD) distribution deal with a Dubai-based firm, Home Screen Motion Pictures LLC, using an earlier contract that falsely listed Pauly’s production house, Pauly Jr. Pictures, as the producer. The Dubai-based company reportedly paid an advance of ₹2 crore (about $232,640 USD), believing the film was produced under Pauly’s banner. Shamnas contends that this move excluded him from the project’s profits, resulting in a financial loss of ₹1.9 crore.
In response, Nivin Pauly issued a statement on social media, asserting that the dispute has been under court-directed arbitration since June 28, 2025, with a gag order in place to maintain confidentiality. “Despite this, a new case has been registered without respecting the court’s directions and by concealing the ongoing arbitration proceedings and manipulating facts,” Pauly stated, adding that he intends to pursue legal action to address the allegations. Director Abrid Shine has not yet publicly commented on the matter.
The case has sparked significant attention in the Malayalam film industry, raising questions about transparency in film financing and production agreements. Action Hero Biju 2 is a highly anticipated sequel to the 2016 hit Action Hero Biju, which was praised for its realistic portrayal of a police officer’s life. The project, announced in February 2024, is backed by Pauly Jr. Pictures, with pre-production reportedly underway.
The investigation is being led by Station House Officer Vipin Chandran, and relevant documents have been submitted to judicial authorities for further proceedings. Neither Pauly nor Shine has been arrested, and the case remains under investigation.
This legal controversy adds to Pauly’s recent challenges, though he received a clean chit in a separate sexual assault case earlier this year. On the professional front, Pauly is preparing for the release of Sarvam Maya, directed by Akhil Sathyan, slated for a Christmas 2025 theatrical release, and his OTT debut with the web series Pharma on Jio Hotstar. He is also set to star in Bethlehem Kudumba Unit alongside Mamitha Baiju and in Yezhu Kadal Yezhu Malai, which premiered at the International Film Festival Rotterdam.
As the case unfolds, the film industry and fans await further developments, with Pauly maintaining that “the truth will prevail.”
