The Kerala High Court on Thursday extended the interim stay of proceedings against actor Nivin Pauly and director Abrid Shine in a criminal case alleging a fraud of ₹1.9 crore.

A case was registered against the duo under Sections 406 (criminal breach of trust) and 420 (cheating), read with Section 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code, based on a complaint filed by P S Shamnas, proprietor of Indian Movie Makers, at the Thalayolaprambu police station.

According to the complainant, he had invested ₹3.5–4 crore in the film Mahaveeryar, which failed at the box office. Shamnas alleged that the accused subsequently promised him a co-producer role in Action Hero Biju 2, along with a share in overseas rights profits. He claimed that the accused later concealed details of the title transfer and used an earlier agreement to sell the overseas rights of the film to a Dubai-based company for ₹5 crore, causing him wrongful loss.

The court had earlier stayed the proceedings against the accused and, on November 24, referred the matter for mediation. When the case was taken up on Wednesday for a mediation report, the court was informed that the mediation had failed as the petitioners did not participate in the process.

“It is reported that mediation is unsuccessful since the petitioner did not participate in the mediation. The interim order dated August 12, 2025, is extended by a month,” Justice C S Dias observed. The matter has been posted for further consideration on January 15.
(With LiveLaw inputs)