Income Tax Searches at Ramayana Producer Prime Focus’ Mumbai Offices; Shares Fall 8%

The Income Tax Department conducted search operations at the Mumbai offices of Prime Focus, the VFX and post-production company headed by Ramayana producer Namit Malhotra, on Wednesday morning, CNBC-TV18 reported.

The searches — covering Prime Focus and Malhotra’s chartered accountant — are linked to evidence allegedly found during last week’s searches at the premises of film personalities. Malhotra has reportedly invested ₹4,000 crore in Nitesh Tiwari’s Ramayana, India’s most expensive film project.

Following the news, Prime Focus shares fell 8%, Bollywood Hungama reported.

The development comes days after the IT Department searched around 12 Mumbai premises on September 28 linked to actor Rakul Preet Singh, veteran producer Vashu Bhagnani and Panorama Studios, over suspected overseas financial irregularities connected to the film industry.

The investigation is at a preliminary stage and no official findings have been announced; the searches do not by themselves establish any violation. Neither Prime Focus nor the IT Department has issued an official statement so far.

Source: Bollywood Hungama; CNBC-TV18 via InShorts; Hollywood Reporter India.