All hell broke loose when the video of the show seemed to suggest that the actor and other singers were merely lip-synching to pre-recorded songs.
The band was reportedly paid around Rs 1.63 crore and the organisers had clarified that Mohanlal was not receiving the money; it was to go to the singers taking part in the show.
While Mohanlal drew considerable flak on social media, his fans were critical of the show's quality.
Director Vinayan was among the first to protest against the hefty fee charged by the superstar. He now says there should be more clarity about who benefitted from the event.
There are reports that the band has disintegrated.
But music director Ratheesh Vegha, the coordinator of the show, later informed the media that it was not true.
In a letter to the state government, Mohanlal wrote he had been "pained by the strong criticism" and wishing to stay out of controversy, was ready to return the Rs 1.63 crore fee.
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