Sheela was born in a Anglo Indian Catholic Christian family in Trissur. Her real name was Clara. She is the grand daughter of Kuriyedath Thathri, Who Later Maried to a Anglo Indian, who was excommunicated from the Nambudiri community on charges of adultery through Smarthavicharam: However she has made it clear in a recent interview in Vanitha - Malayalam women's magazine that she didn't have such a lineage and that this was a rumour propagated by the industry.