Producer Sandra Thomas has levelled serious allegations against fellow producer and distributor Listin Stephen, accusing him of facilitating the interests of an external financial lobby attempting to monopolise the Malayalam film industry. In a strongly worded statement released via social media on Sunday, Sandra warned that the industry was on the brink of falling into the hands of “a loan shark from Tamil Nadu”, with Listin allegedly playing the role of a key enabler. “Please, a humble request, Listin Stephen must not stand by the devious schemes of the loan shark attempting to seize control of the Malayalam film industry,” she wrote. “He must not commit the grave injustice of handing over the industry to misguided financial interests.”

Sandra's statement came in the wake of Listin's controversial remarks at the promotional event of the Dileep-starrer Prince And Family on Friday, where he accused a prominent actor of committing a “grave mistake.” Sandra described those remarks as inappropriate for someone in an official role within the Kerala Film Producers Association and urged the organisation to revoke his membership. While Listin did not name anyone, the speculation surrounding his remarks intensified. It was rumoured to be linked to Nivin Pauly's decision to temporarily exit the ongoing film Baby Girl. However, Baby Girl director Arun Varma clarified that there were no issues between Nivin and the film's production.

Sandra further accused Listin of consolidating power through his company Magic Frames while holding top positions in key industry bodies—the Distributors’ Association and the Producers’ Association. She claimed he was acting in the interest of a black money lobby from outside Kerala, pushing a financial model that threatens to sideline independent producers and scare off legitimate investors. She criticised the Producers’ Association’s recent decision to publish selective box office figures, alleging it was a calculated move to portray the industry as loss-making. “By releasing only the box office figures, the narrative being pushed is that Malayalam cinema is in loss, a move that scares away potential investors,” she wrote.

Sandra also alleged that Listin has invested heavily in ongoing productions using high-interest borrowed funds and is now functioning as an “agent” of external financiers. “The interest-driven monopoly he is now creating in Malayalam cinema could eventually consume him as well,” she warned. She pointed to growing challenges for independent producers, including the alleged inability to sell satellite rights directly due to lobbying, saying, “What now exists is a situation in which ordinary producers cannot survive.”

Closing her statement, Sandra appealed to film organisations, workers, and the media to recognise what she called a grave threat to the industry's future. “Listin Stephen must self-reflect and try to stand for the well-being of the Malayalam film industry and the larger good of society,” she said, stressing that her statement was made “entirely with good intentions”.