In 2006, Kannada cinema witnessed a phenomenon with the release of "Mungaru Male," a romantic drama directed by Yogaraj Bhat, starring Ganesh, Pooja Gandhi, and Anant Nag. Made on a modest budget of just ₹70 lakh, the film achieved unprecedented success, earning over ₹75 crore worldwide. "Mungaru Male" became India's most profitable film in terms of return on investment, exceeding 100 times its original production cost.

The film's plot revolves around a heartbroken boy who meets a spirited girl, with rain serving as both a backdrop and a metaphor. "Mungaru Male" was more than just a love story; it was a turning point for Kannada cinema. Upon its release in December 2006, the film became a sleeper hit, breaking records and becoming the highest-grossing Kannada film ever at the time. It was the first Indian film to run continuously for over a year in a multiplex, completing 460 days at PVR Bangalore, a record that is rarely matched even today. "Mungaru Male" also became the first Kannada film to cross ₹50 crore in box office collections, an unimaginable feat back then. A significant portion of its earnings, approximately ₹57 crore, came from Karnataka.

The film's unexpected success catapulted the lead actors, Ganesh and Pooja Gandhi, to stardom, making them household names. However, the film's success also brought challenges for producer E. Krishna. The Income Tax Department conducted a raid at his home, alleging that the film had collected ₹67.50 crore net and demanding tax payment for the same.

"Mungaru Male's" box office records stood for over a decade until they were broken by "KGF: Chapter 1". The film has been remade in several languages, including Telugu as "Vaana," Bengali as "Premer Kahini," Odia as "Romeo- The Lover Boy," and Marathi as "Premay Namaha". In 2016, a spiritual sequel, "Mungaru Male 2," was also released. The film continues to enjoy a cult following among Kannada audiences, with frequent reruns on television and recent availability on OTT platforms.

The Income Tax Department has, at various times, conducted searches on members of the Kannada film industry. In January 2019, raids on actors, producers, and film financiers resulted in the seizure of undisclosed assets worth ₹11 crore and the admission of unaccounted income of about ₹109 crore. The searches covered film production companies, film producers, film financiers, and actors, including Shiva Rajkumar, Puneeth Rajkumar, Sudeep, and Yash.