New Delhi: The Income Tax Department Wednesday conducted searches at the Mumbai offices of Prime Focus Ltd, the media and entertainment company of filmmaker and producer Namit Malhotra, just a few weeks before the much-anticipated release of the first part of Ramayana.
Since the development, Prime Focus’ shares have tanked by 8 per cent.
Officials are also reportedly searching the premises of certain individuals associated with the company. However, the exact transactions under scrutiny and the broader scope of the investigation have not been disclosed yet.
The IT department is examining financial records and documents as part of its search operations. So far, there has been no official statement establishing that the company has committed tax evasion or any other financial wrongdoing.
Notably, Prime Focus has a significant international footprint, with businesses spanning visual effects, animation, post-production and content production.
Neither the Income Tax Department nor Prime Focus has publicly disclosed the findings from Wednesday’s searches.
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Back-to-back raids
The Prime Focus searches come shortly after the I-T Department searched around 12 locations in Mumbai on 28 September, including premises linked to producer Vashu Bhagnani and Panorama Studios.
Those searches were reportedly part of an investigation into suspected financial irregularities, including alleged tax evasion and overseas movement of funds linked to film-related transactions.
However, there is no official confirmation at present that the Prime Focus searches are part of the same investigation.
Rakul Preet Singh, whose name was linked to the September searches in several reports, has since denied that the Income Tax action was against her. In a statement, she said the search was not about her and denied involvement in illegal foreign remittances or holding any benami property.
(Edited by Saptak Datta)