A case of cheating has been registered against actor Nivin Pauly and filmmaker Abrid Shine following a complaint lodged by a resident of Thalayolaparambu in Kottayam, Kerala.

The first information report (FIR), filed on Wednesday (July 16, 2025) night, cites Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC), based on a complaint by P.S. Shamnas, co-producer of the 2022 film Mahaveeryar.

According to the complaint, after the commercial failure of Mahaveeryar, the actor allegedly assured Mr. Shamnas a compensation of ₹95 lakh and a partnership in his upcoming film Action Hero Biju 2, to be directed by Abrid Shine. Relying on this promise, Mr. Shamnas invested around ₹1.9 crore in the new project.

Though the film was initially registered under the banner of Indian Movie Makers, owned by Mr. Shamnas, the actor and the director allegedly entered into a ₹5-crore distribution deal with a Dubai-based firm, citing a prior agreement that listed the actor’s own production company as the producer. It is further alleged that the actor also obtained ₹2 crore as advance from the Dubai-based company.

The complainant has accused the duo of deliberately concealing the film’s actual registration details to defraud him of his investment.

Nivin Pauly’s response

Reacting to the development, Nivin Pauly confirmed the registration of the police case but claimed that it was filed by concealing facts.

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“The dispute has been under court-directed arbitration since May 28, 2025, with a gag order in place to ensure confidentiality. Despite this, a new police case has been registered in violation of the court’s directives, suppressing the ongoing arbitration proceedings and distorting facts,” the actor stated in a social media post.

“We will take appropriate legal action. The truth will prevail,” he added.