Gulf, gold smuggling and slush funding mark Kerala's film industry

The recent probe launched by the intelligence agencies into the source of funds of the Malayalam films has come as a set back to the industry that is affected by the Covid-19 pandemic.

The investigation follows the busting of a gold smuggling case in Kerala, involving former employees of the Indian consulate in UAE.

Some prominent film producers have reportedly admitted to the use of slush funds in film production.

The state police special branch has sought details of Malayalam films produced since 2019. Among other things, it wants to know how much was paid to actors.

Agencies like the ED are also looking at whether gold smuggling provided the funds for film production.

Faizal Fareed, based in the UAE and a key accused in the gold smuggling case, allegedly arranged funds for films.

READ: Lights, Camera, Finance: Money woes mar film industry reopening

Siyad Koker, producer and president of the Kerala Film Distributors Association, has said the Malayalam film industry was benefiting from money earned through illegal means.

Non-resident Indians are a major source of funding to the Malayalam film industry and the economic slowdown abroad is a major cause of concern.

According to M Renjith, president of the Kerala Film Producers Association, production of 66 films has been stalled by the pandemic, with 15 of them being in the final stages of production. The industry's loss due to the lockdown is estimated at Rs 600 crore.

G Suresh Kumar, a leading producer, says the Malayalam film industry often depends on private financing firms, most of which are based in Chennai. Some government agencies offer financing, but the procedures are slow and cumbersome.

Private financing firms charge up to 36 per cent annual interest. But they offer money quickly, and take the film as collateral. This is referred to as ‘negative pledging’ as the film’s rights are pledged with the financiers and the release is subject to clearance from them.

Financiers are not insisting on repayment during the lockdown, but the interest is piling up. Producers have urged actors to reduce their remuneration, and many have agreed.

Alternative livelihoods

Suresh Kumar and Renjith lamented the lack of support from the government. At least entertainment tax should be lifted. Most theatres in Kerala were recently renovated at huge cost. Major exemptions should be given to theatres, they said.

However, many film industry workers, especially those working on daily remuneration, are struggling to make ends meet. One example of this is the actor Vinod Kovoor, who has reprised the reel role of the fisherman 'Moosakka' in real life, and has set up a fish shop along with his friends.

Though many film industry workers want to return to their original jobs, they have been forced to take up alternative livelihoods. Many industry forums have offered remuneration to their members, but a major chunk of workers are not part of any such organisation.