Released in early 2024, Manjummel Boys became a pan-Indian hit, grossing over ₹285 crore worldwide and later securing an OTT deal with Disney+ Hotstar. Photo: courtesy Wikimedia Commons
Actor Soubin Shahir arrested in 'Manjummel Boys' fraud case
The actor-filmmaker was taken into custody over Rs 7 crore fraud complaint; Kerala HC had granted him anticipatory bail on June 26
Popular Malayalam actor and filmmaker Soubin Shahir was formally arrested on Monday (July 7) in connection with a high-profile financial fraud case linked to the blockbuster film Manjummel Boys. However, he was released shortly afterwards, as the Kerala High Court had earlier granted him anticipatory bail in the case.
The arrest was carried out at the Maradu Police Station, where Soubin, along with his father-cum-business partner Babu Shahir and Shaun Antony, appeared for questioning following a summons under Section 41A of the Criminal Procedure Code. The arrest was procedural, police sources said, and done in compliance with the law, as the court had directed the actor to cooperate fully with the investigation.
Complaint by UAE-based investor
The case stems from a complaint filed by Siraj Valiyathara Hameed, a UAE-based investor from Alappuzha, who alleged that the actor and his production company, Parava Films, defrauded him of over ₹7 crore. Siraj claims he had invested the amount in Manjummel Boys under a profit-sharing agreement that promised him 40 per cent of the film's earnings, but he received only a fraction of the returns even after the film's unprecedented success.
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Released in early 2024, Manjummel Boys became a pan-Indian hit, grossing over ₹285 crore worldwide and later securing an OTT deal with Disney+ Hotstar. According to the complaint, the producers failed to honour the profit-sharing terms after collecting substantial box-office and streaming revenues.
FIR in April 2025
Police registered an FIR in April 2025, invoking charges of cheating, criminal breach of trust, and misappropriation of funds. The complainant has alleged that only ₹5.99 crore was returned to him over a prolonged period, and despite repeated requests, the producers withheld the remaining share. He also submitted WhatsApp chats, bank records, and signed agreements to substantiate his claims.
The Kerala High Court had on June 26 granted anticipatory bail to Soubin and his father, observing that the case appeared to be a commercial dispute rather than a criminal offence. However, the court directed the accused to present themselves before investigators on July 7 and 8, which led to Monday’s developments.
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Soubin was briefly taken into custody for formal documentation of the arrest and then released on personal bond, as permitted under the anticipatory bail order. The police said his custodial interrogation was not warranted at this stage and that they would proceed with the scrutiny of documents and digital evidence.
Turning point in Malayalam cinema?
While Soubin has not made any public statement yet, the case has caused a stir in the Malayalam film industry, where informal financial arrangements with private investors are common but rarely scrutinised.
Industry insiders say this case could mark a turning point in the business side of Malayalam cinema, potentially leading to demands for greater financial transparency, investor accountability, and formal legal contracts in film financing.
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The investigation is ongoing, and police have not ruled out further arrests or forensic audits of production accounts.