Mumbai, October 7, 2026: The Income Tax Department on Wednesday conducted search operations at the Mumbai headquarters of Prime Focus Ltd, the company headed by Ramayana producer Namit Malhotra, and the offices of its statutory auditor, MSKA & Associates LLP, in connection with suspected irregularities in foreign remittance transactions, sources said.
The searches, which began early Wednesday morning, were also carried out at the premises of certain individuals linked to Prime Focus, the sources said. The exact nature and scope of the transactions under scrutiny were not immediately clear.
The action comes less than a month before the scheduled release of Nitesh Tiwari’s much-anticipated Ramayana: Part One, in which Ranbir Kapoor and Yash play the lead roles. The film is scheduled for a Diwali release.
Prime Focus’ Film Portfolio
Prime Focus is a visual effects and post-production company with operations in India and overseas. The group provides visual effects, animation and content-creation services through its global businesses, including DNEG. The group has been associated with several major Indian and international film projects, including Nitesh Tiwari’s upcoming Ramayana, one of the most ambitious Indian films currently in production.
Other notable projects associated with the group include Kalki 2898 AD, Stree 2, Chhaava, Ra-One, Ek Tha Tiger, Fighter and Sky Force. It has also worked on several high-profile international productions.
In a regulatory filing in response to queries from the stock exchanges, Prime Focus confirmed that the I-T Department had initiated a search under the provisions of the Income Tax Act, 2025, at certain offices of the company. The company said it was “fully co-operating” with the tax authorities and providing the information, documents and clarifications sought by officials.
Company Says Operations Continue
The searches come amid scrutiny of foreign remittance transactions, though the company said it was not in a position to comment on the subject matter of the search as no findings or alleged violations had been communicated to it.
The development also weighed on Prime Focus’ stock price during Wednesday’s trading session. Shares of the company closed at Rs 285.05, down Rs 8.15 or 2.78 per cent from the previous close of Rs 293.20.
The company said its business operations continued as usual and were not affected by the search. It added that it would make further disclosures to the stock exchanges regarding any material developments in accordance with applicable law.
Prime Focus has significant international operations, with the company’s investor information indicating that around 92% of its revenue comes from markets outside India. This makes foreign transactions an important part of its overall business.
Probe Into Financial Transactions
According to investigators, the latest action against the company and its chartered accountant firm stems from incriminating evidence unearthed during raids conducted last week at the premises of prominent film personalities and production entities. The latest action is understood to be part of the department’s ongoing probe into alleged tax evasion, financial irregularities and suspected overseas fund transfers, with tax officials closely examining the financial audit trail to determine the true nature and purpose of the transactions under scrutiny.
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The tax scrutiny arrives at a critical juncture for the media firm, coming shortly after shareholders approved a major Rs 3,000 crore capital-raising plan. The approval was granted at Prime Focus’ 29th Annual General Meeting held on September 30, where shareholders passed enabling resolutions authorising the board to raise the funds.
The Income Tax Department’s searches are currently underway, and more details are awaited regarding the nature of the transactions under scrutiny. At present, there has been no official statement establishing any wrongdoing by Prime Focus or the individuals whose premises are being searched.
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