A case has been registered against Malayalam actor Nivin Pauly and director Abrid Shine following a complaint of financial fraud by a resident of Thalayolaparambu. The FIR invokes IPC Sections 406 (criminal breach of trust) and 420 (cheating) based on a complaint by PS Shamnas, co-producer of the 2022-released Nivin Pauly-Abrid Shine film, Mahaveeryar.

Shamnas alleged that after Mahaveeryar failed commercially, Nivin promised to pay him Rs 95 lakh and offered him a partnership in his upcoming film Action Hero Biju 2, directed by Shine. Relying on this assurance, Shamnas claims he spent around Rs 1.9 crore on the new project.

The film was allegedly registered under Shamnas’ company, Indian Movie Makers, but Nivin and Shine later entered into a Rs 5 crore distribution deal with a Dubai-based firm, citing an earlier contract that listed the actor’s production house as the producer. Shamnas has accused the duo of concealing the film’s actual registration to cheat him of Rs 1.9 crore.

Meanwhile, Nivin Pauly, in a clarification statement shared on social media, has mentioned that the dispute has been under court-directed arbitration since June 28, with a gag order in place to ensure confidentiality. He added that a new case has been filed despite the gag order by concealing the ongoing arbitration proceedings and manipulating facts. Nivin also stated that legal action will be pursued against the same.

Action Hero Biju 2, the sequel to Nivin-Abrid Shine combo's 2016 blockbuster, was first announced in February 2024, coinciding with the film's eighth release anniversary. However, there have been no updates about it since then, with Nivin also getting busier with multiple other projects.