The lawsuit stems from a 2020 video connected to Kerala’s diplomatic gold-smuggling scandal.
Abu Dhabi: “We welcome criticism, but won’t allow misinformation to go unchallenged.” That is the message from LuLu Group as it pursues a ₹10 crore (approximately Dh3.9 million) defamation lawsuit against Malayalam YouTuber Marunadan Malayalee, signalling that it has no intention of resolving the dispute through an out-of-court settlement.
The case, filed by LuLu Group and its chairman, M.A. Yusuffali, relates to allegations made in a YouTube video published in November 2020. The video linked the UAE-based businessman and his retail group to Kerala’s high-profile diplomatic baggage gold-smuggling scandal.
Six years after the video was uploaded, the dispute remains before the courts, even though the publisher later released another video withdrawing his earlier remarks.
The case has drawn particular attention among Malayalees in the UAE, where Yusuffali is a prominent business figure and LuLu Group has an extensive retail presence and a large workforce.
V. Nandakumar, Director of Marketing and Communications at LuLu Group International, told that the company would continue to pursue the matter through the judicial system.
“We have immense respect for India’s judicial system and are committed to addressing these matters strictly through the legal process,” Nandakumar said.
“Proceedings have already been initiated in courts in Kerala, Lucknow and Delhi against individuals we believe have engaged in such activities. We remain unwavering in our decision to pursue these cases to their legal conclusion. There is no question of withdrawing them or stepping back from our position,” he said.
What triggered the case?
The dispute dates back to November 21, 2020, when Malayalam digital news platform Marunadan Malayalee published a YouTube video alleging a link between Yusuffali and Kerala’s gold-smuggling scandal.
LuLu Group and Yusuffali rejected the claims and subsequently initiated defamation proceedings, seeking ₹10 crore (approximately Dh3.9 million) in damages.
In May 2023, the Delhi High Court granted interim relief to Yusuffali, ordering the removal of the disputed content and restraining the publisher from making further remarks about him.
Separate legal proceedings were also initiated in Kerala, including before the Ernakulam Sub Court, as well as in Lucknow.
What is the Kerala gold-smuggling case?
The scandal came to light on July 5, 2020, when Indian Customs officials seized more than 30kg of gold, valued at nearly ₹15 crore, from a diplomatic baggage consignment at Thiruvananthapuram International Airport.
The shipment had arrived from Dubai. The investigation later involved several Indian agencies, including Customs, the National Investigation Agency and the Enforcement Directorate.
The case triggered a major political controversy in Kerala and led to investigations into an alleged smuggling network suspected of exploiting diplomatic cargo channels.
Neither Yusuffali nor LuLu Group was named as an accused or suspect by investigating agencies in connection with the gold-smuggling investigation. However, the alleged link made in the YouTube video became the basis for the subsequent defamation proceedings.
Was there an apology?
The dispute took another turn in late October 2026, when Marunadan Malayalee published a video in which its founder, Shajan Skariah, said his earlier remarks were incorrect and withdrew them.
The video was widely described as an apology. However, Skariah later disputed that it amounted to a formal apology.
The distinction is important because LuLu Group has made it clear that it intends to continue with the legal proceedings rather than consider the withdrawal of the remarks an end to the dispute.
No withdrawal
Nandakumar said the company respects freedom of expression and people’s right to question its decisions, but stressed that criticism must be distinguished from the spread of information the company considers fabricated or misleading.
“At LuLu Group, we strongly believe in freedom of expression and respect every individual’s right to hold different opinions, question our decisions and even criticise us,” he said.
“However, freedom of speech should never become a licence to spread fabricated stories, baseless allegations or deliberately misleading information intended to damage reputations. We draw a very firm line when such activities target the credibility and integrity of LuLu Group, our brand or our Chairman, Yusuffali M.A.”
He added that the company would pursue all legal avenues available to protect its reputation.
“We will exercise all lawful options available to safeguard our reputation and seek accountability,” he said.
Why it matters
The dispute has implications beyond the courtroom, particularly for the sizeable Malayalee community in the UAE.
Yusuffali is one of the most prominent Indian business leaders in the Gulf, while LuLu Group has established a substantial retail and international business presence across several countries.
Nandakumar said the company’s reputation was about more than its commercial operations.
“For us, LuLu represents much more than a commercial organisation. It is a source of pride, livelihood and belonging for over 75,000 employees and their families,” he said.
“The trust and goodwill built over decades are invaluable to us.”
He added: “We respect genuine criticism, however strong it may be, but we will not remain silent when deliberate misinformation threatens the values, reputation and integrity of an organisation that so many people proudly call their own.”
What happens next?
The Delhi High Court has scheduled the next hearing in the matter for December 14, 2026.
LuLu Group has reiterated that it intends to pursue the defamation proceedings despite the publisher’s withdrawal of his earlier remarks.
The case will continue through the judicial process, with the company ruling out any possibility of an out-of-court settlement.
