Kerala HC Quashes Fraud Case Against Actor Nivin Pauly

Parties reach amicable settlement in ₹1.9 crore fraud dispute

Justice PV Balakrishnan ordered the quashing of the case on October 28, 2026, after finding that the parties reached an amicable settlement. The public prosecutor verified to the court that the settlement agreement was genuine.

The court also quashed the crimes against all three respondents and allowed all related pleas. The public prosecutor confirmed that the settlement between the parties was bona fide.

Court finds allegations lack serious impact on society

Justice PV Balakrishnan stated regarding the decision, "I am of the view that the petitioner and the 2nd respondent have amicably settled the disputes which led to the registration of the crime". He added, "It also shows that the offences alleged against the petitioner are not serious in nature and do not have a serious impact on society".

The Court observed that the alleged offences had no serious impact on society. Justice PV Balakrishnan further noted, "That apart, I am of the view that no purpose will be served in continuing with the prosecution since, the chances of the petitioner getting convicted are bleak".

The court concluded that continuing the prosecution would serve no purpose because the chances of conviction were bleak.

Details of the original fraud and forgery complaints

P.S. Shamnas, the proprietor of Indian Movie Makers, filed a criminal complaint at Thalayolaprambu Police Station in Kottayam. He alleged that he invested between ₹3.5 crore and ₹4 crore in the film Mahaveeryar.

Shamnas claimed he was promised a co-producer role in the sequel Action Hero Biju 2 and a share of overseas profits. He claimed that the accused utilized an obsolete contract to dispose of the film's international rights to a Dubai-based firm for ₹5 crore, all without his permission.

The FIR registered against Nivin Pauly and Abrid Shine included charges under sections 406 for criminal breach of trust, 420 for cheating, and 34 for common intention. A separate private complaint was lodged by Nivin Pauly with a magistrate, in which he accused Shamnas of falsifying his signature on paperwork provided to the Kerala Film Chamber of Commerce. This led to a case being registered by Palarivattom Police Station in Ernakulam under IPC sections 465 for forgery and 471 for using a forged document as genuine.

Interim relief granted in August 2025

During August 2025, the High Court provided interim relief to both Pauly and Shine by placing a stay on the criminal case brought against them. Additionally, Shamnas petitioned the Kerala High Court seeking the dismissal of the criminal case filed against him. The court ultimately quashed the separate forgery case against producer PS Shamnas, who had originally filed the cheating complaint against the actor and director.

Legal representation for the parties

Advocate Millu Dandapni appeared for Nivin Pauly in the proceedings. A team of advocates including S. Rajeev, V. Vinay, M.S. Aneer, Sarath K.P., Anilkumar C.R., and K.S. Public prosecutor Devadas H. Mallan appeared for the State.