The controversy surrounding the film Janaki VS State of Kerala has escalated, with director MB Padmakumar fiercely criticizing veteran filmmaker Sibi Malayil for allegedly dismissing his movie as a "small film" intended for film festivals. Padmakumar claims Malayil's remarks have had tangible negative consequences, including a distributor withdrawing their investment in the project.

Padmakumar expressed his outrage in a video titled "Just kill me, Mr Sibi Malayil," shared on his YouTube channel. He questioned Malayil's knowledge and understanding of the film, asking if the absence of superstars or a large budget automatically relegates a film to "small" status, unworthy of audience attention. He further lamented that Malayil's comments have undermined his efforts and those of his team who have been working tirelessly on the film for the past seven months.

The dispute arose in the wake of the Censor Board raising concerns about the film's title. Malayil commented on the issue, referencing another film by Padmakumar that faced similar issues with the name "Janaki." He stated that the Censor Board decided not to approve or certify the film without changing the name "Janaki," describing it as a "small film, one made to be sent to film festivals". Padmakumar took offense to this characterization, arguing that it was unfair and damaging to his film's prospects.

Padmakumar challenged Malayil to watch the film with an audience and retract his statement if viewers found it to be poorly made or unengaging. He declared his willingness to quit filmmaking if the audience perceived the film as a mere "award film". He also voiced his frustration with film organizations, stating that membership costs often deplete a producer's budget, making it difficult for filmmakers like him to cast new talent. He believes that Malayil's attitude contributes to the industry's reluctance to support films made by ordinary individuals.

The controversy has ignited discussions within the Malayalam film industry about censorship, artistic freedom, and the criteria used to evaluate films. Protests have been held against the Censor Board's directive to remove the name "Janaki" from the film's title and main character. Film workers, including directors and actors, participated in these demonstrations, with many throwing scissors into a dustbin to symbolize their rejection of censorship.