The Income Tax Department has reportedly conducted searches at the Mumbai offices of Prime Focus Ltd on Wednesday morning (October 7), just a month before the release of highly anticipated Ramayana. The development comes at a crucial time for Prime Focus, which is headed by Namit Malhotra and is closely associated with the ambitious two-part mythological epic.
Ramayana, starring Ranbir Kapoor, Sai Pallavi, Yash, Sunny Deol and Ravie Dubey, is scheduled to hit theatres during Diwali next month.
According to CNBC-TV18, the Income Tax searches at Prime Focus' offices are linked to foreign remittances, referring to the transfer of money from India to another country. However, details about the specific transactions being examined and the exact nature of the inquiry have not been disclosed yet.
The reported searches have also affected Prime Focus' performance in the stock market, with the company's shares reportedly falling by around 8 per cent on Wednesday morning.
Prime Focus And Its Work On Ramayana
Prime Focus, led by Namit Malhotra, is a major media and entertainment services company with operations across visual effects, animation, post-production and content production. The company also has an international presence, with reports stating that around 92 per cent of its revenue comes from markets outside India.
The company has also faced regulatory scrutiny this year. In June, the Securities and Exchange Board of India (SEBI) closed adjudication proceedings against Prime Focus concerning accounting treatment and financial disclosures after finding no irregularities.
The latest Income Tax searches come as Prime Focus Studios continues its work on Ramayana, one of the year's most anticipated Indian films.
About Ramayana
Directed by Nitesh Tiwari, the film features Ranbir Kapoor as Lord Ram, Sai Pallavi as Sita, Yash as Ravan and Sunny Deol, Rakul Preet Singh, Arun Govil and Ravie Dubey in the ensemble cast. The first part is scheduled for a Diwali release, while the second instalment is expected to arrive next year.
According to a report in Pinkvilla, the film is expected to release in India on November 5.
