She was arrested from her house at Perunna, Changanassery, on last Friday. Police listed her name to the scandal because of her relation with Biju Radhakrishnan, the kingpin. She was alleged for helping Biju to hide his money and also accepting a share of it. She only helped Biju to escape from the State in her own car and also had given him her mobile phone. When Biju was arrested from Coimbatore, her phone was identified by the police and thus she also got arrested.
Shalu Menon refused her involvement in the case when she was questioned by the police after Biju's arrest. But later she accepted her involvement in the scandal to the Special Investigation probe for this case, after her arrest.
Shalu Menon was a member of the Censor Board and now she has been removed from it after this case. She owns her own dancing school named Jaya Kerala School of Performing Arts.