Ramayana producer Namit Malhotra’s Prime Focus offices raided by I-T department in Mumbai

The Income Tax Department on Wednesday, October 7, conducted searches at the Mumbai offices of Prime Focus Limited, the media and entertainment company associated with filmmaker and Ramayana producer Namit Malhotra, as reported by AajTak.

The action comes days after the tax authorities carried out searches at several locations linked to film personalities and production houses.

The latest searches are believed to be connected to documents and financial evidence recovered during the earlier Income Tax operations. Investigators are reportedly examining transactions linked to alleged tax evasion, financial irregularities and the transfer of funds overseas.

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The Income Tax Department is understood to be scrutinising financial records and documents at Prime Focus and locations associated with the company's chartered accountant. The focus of the investigation reportedly includes tracing the financial trail and determining the nature and purpose of certain transactions.

Prime Focus is headed by Namit Malhotra and has a major presence in the global media and entertainment industry, particularly in visual effects, animation and post-production. Its international operations have made overseas financial transactions an important area of scrutiny in the ongoing investigation.

The development has also had an immediate impact on the company's stock. Prime Focus shares reportedly fell by around 8% after news of the Income Tax searches emerged on Wednesday.

The timing of the searches has drawn additional attention because Prime Focus Studios is behind the highly anticipated Ramayana, directed by Nitesh Tiwari and produced by Namit Malhotra. The film stars Ranbir Kapoor, Sai Pallavi, Yash, Sunny Deol and Ravie Dubey and is scheduled for a theatrical release around Diwali. Prime Focus Studios officially lists Ramayana among its current productions.

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The latest action also follows Income Tax searches conducted in late September at locations linked to actor Rakul Preet Singh, filmmaker-producer Vashu Bhagnani and Panorama Studios over suspected financial irregularities and alleged overseas fund transfers. Rakul has since denied that the Income Tax search was connected to her and rejected reports suggesting her involvement in illegal remittances or benami property.

As of now, the searches at Prime Focus are reportedly continuing, and no detailed official statement from the Income Tax Department or Prime Focus regarding the specific transactions under investigation has been made public. Further details are expected once the search operation concludes.