Big IT Trouble Before Ramayana? Crores of Losses Ahead?

The Income Tax Department has conducted searches at the Mumbai offices of Prime Focus Ltd. Interestingly, the company is behind the much-awaited Ramayana starring Ranbir Kapoor, Sai Pallavi, and Yash.

The searches come just days after reports of similar Income Tax action at premises linked to producers Vashu Bhagnani and Kumar Mangat Pathak. According to reports, the tax authorities began searching Prime Focus’ Mumbai offices on Wednesday morning and also visited the premises of certain individuals associated with the company.

The searches were reportedly connected to foreign remittances, although details about the transactions under scrutiny and the exact nature of the investigation remain unclear. The development immediately affected investor sentiment, with Prime Focus shares falling sharply by 8% after news of the Income Tax action emerged.

Headed by Namit Malhotra, Prime Focus is a major media and entertainment services company with operations across visual effects, animation, post-production and content production.

The timing is particularly significant as Prime Focus Studios is gearing up for the release of Nitesh Tiwari’s Ramayana. The mythological epic is scheduled to hit theatres during Diwali, barely a month away. Neither Prime Focus nor the Income Tax Department has issued a detailed statement on the searches so far, with further details awaited.