Lyca Productions’ Unexpected Exit from ‘L2 Empuraan’ Sparks Industry Buzz

Lyca Productions Faces Uncertain Future Amid ‘L2 Empuraan’ Exit

Financial Struggles and Production Setbacks Shake the Industry

Lyca Productions, once a dominant force in South Indian cinema, is facing turbulent times. Their unexpected decision to sell the rights of L2 Empuraan to Gokulam Movies has raised concerns about their future in the film industry. The move comes as a shock, especially since this was their maiden venture in the Malayalam industry.

The production house, known for successful Tamil films like Vada Chennai, Chekka Chivantha Vaanam, and Don, has reportedly been struggling since 2023. A series of box office failures, including Chandramukhi 2, Lal Salaam, Vettaiyan, Indian 2, and Vidaamuyarchi, have contributed to their downward spiral.

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Adding to their woes, Lyca Mobile, the UK-based parent company, is currently facing VAT fraud and money laundering investigations in France and the United Kingdom. Amidst this crisis, Lyca Productions has decided to step back from financing new films, leading many to speculate whether they are on the verge of shutting down.

Despite their exit, Lyca still retains stakes in L2 Empuraan, as their name continues to appear on promotional posters. Meanwhile, uncertainty looms over the fate of Indian 3, which has already been filmed. Rumors suggest that Lyca Productions may conclude its journey in the industry after completing the much-anticipated Jason Sanjay directorial debut.

As discussions continue, the industry watches closely, waiting to see whether Lyca can make a comeback or if this marks the end of their cinematic legacy.