Debutant Ghaywan and his film also won the Most Promising Newcomer award in the Un Certain Regard category.
The Richa Chadha-starrer, which was screened in the Un Certain Regard section, follows a group of people living in Varanasi, which reserves a cruel punishment for those who play with moral traditions.
"Neeraj Ghaywan's Masaan wins the FIPRESCI prize at The CANNES film festival," director Anurag Kashyap posted on Facebook.
Masaan is an Indo-French co-production produced by Manish Mundra, Macassar Productions, Phantom Films, Sikhya Entertainment, Arte France Cinema and Pathe productions.
"And it's a hat-trick of awards for Manish Mundra audience award at Sundance for Umrika, two at Berlinale for Dhanak and now FIPRESCI at Cannes for Masaan. My nominee for Padamshri.. Please give it to him now," Kashyap added.
Competition film Son of Saul, Hungarian director Laszlo Nemes' first feature, also earned a FIPRESCI honour.
The Holocaust drama, which received strong reviews, tells the story of the Sonderkommando, the Jewish prisoners who were forced to help the Nazis run the concentration camps.
Image: Richa Chadha, Neeraj Ghaywan and Masaan actors Shweta Tripathi and Vicky Kaushal at Cannes.
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