The Income Tax Department on Wednesday conducted search operations at multiple premises in Mumbai linked to Prime Focus Limited, the media and visual effects company founded by producer Namit Malhotra.
The searches were carried out at Prime Focus offices as well as premises linked to the company’s financial advisers and Chartered Accountants. The tax authorities are examining alleged foreign remittances, overseas fund transfers and possible tax-related irregularities.
The development comes at a time when Namit Malhotra’s much-anticipated two-part epic Ramayana remains one of the biggest upcoming Indian film projects. The film stars Ranbir Kapoor as Lord Rama, Sai Pallavi as Sita and Yash as Ravana.
Ramayana, which is being planned as a two-part film, has been widely reported to have a budget of around Rs 4,000 crore. If the reported figure is accurate, the project would rank among the most expensive Indian films ever made.
The Income Tax searches also had an impact on Prime Focus Limited’s shares. The company’s stock reportedly fell by around 8 per cent during trading following news of the searches.
The investigation is currently underway. There has been no official statement from the Income Tax Department or Prime Focus Limited regarding the searches or their outcome.
At this stage, the searches are part of an ongoing tax investigation, and no conclusion has been established regarding any alleged financial irregularities.
