There is close scrutiny after Siyad Koker, a leading film industry personality went on record to say that the Malayalam film industry's links with illegal source of funding do exist.

Kokker, who is the president of the Kerala Film Distributors Association and also doubles up as a producer, on Saturday said that he is not aware if the illegal source of money is through gold smuggling or other means.

"One thing is certain, the film industry here has source to number 2 (a colloquial usage of unaccounted or illegal source of money) funding. This is more so especially when big budgeted films are produced. This is also known to technicians and actors, who also benefit," said Koker.

The Malayalam film industry has been shocked after news of possible links were expressed by the probe agency.

The gold smuggling case has had large scale ramifications after it first surfaced when P.S. Sarith, a former employee of the UAE Consulate here, was arrested by the Customs on July 5 for trying to facilitate smuggling of 30 kg gold in diplomatic baggage to Thiruvananthapuram from Dubai.

Of the four arraigned as accused, three have already been arrested, while the fourth accused is Faizal Fareed is based in the UAE. The Centre has cancelled his passport and he is likely to be brought here shortly.

According to the Customs and the NIA, who are probing the case Fareed is the kingpin and coordinates the smuggling activities from his base in the UAE and he has even acted in a film here.

"Their modus operandi is to befriend people in the film industry and then they move forward," added Koker.

Ever since the gold smuggling gang was busted, reports have surfaced that four recent big budget films have alleged links with illegal source of funding.