The Income Tax Department conducted searches at the Mumbai offices of Prime Focus Ltd on Wednesday, October 7, bringing the company associated with Ramayana producer Namit Malhotra under scrutiny. According to CNBC-TV18, sources said the action concerned foreign remittances and also covered premises linked to certain individuals associated with the company.
Details of the transactions being examined were not immediately available. The development attracted attention because of Malhotra’s involvement in Ramayana, the ambitious film directed by Nitesh Tiwari.
Foreign Remittances Reportedly Under Scrutiny
Reports have linked the searches to overseas financial transactions, but the precise scope of the inquiry has not been publicly established. There is currently no confirmed finding that the transactions under examination were connected specifically to Ramayana’s production funding.
Prime Focus operates across visual effects, animation and post-production, with a substantial international business. Its overseas presence provides context for its cross-border transactions, but the purpose and nature of the particular remittances being scrutinised remain unclear.
Prime Focus Shares Fall During Trading
Prime Focus shares fell around 8% during Wednesday morning trading after reports of the searches emerged. That figure reflected an intraday movement rather than the final closing decline.
The stock subsequently closed at ₹285.05, down ₹8.15, or 2.78%, from its previous closing price of ₹293.20, according to a later report. The distinction is significant because the initial fall was sharper than the loss recorded at the end of the session.
Company Says Business Operations Continue
In a clarification to the stock exchanges, Prime Focus confirmed that tax authorities had initiated searches at certain offices. The company said it was cooperating and supplying the information, documents and clarifications requested.
Prime Focus also stated that business operations continued as usual and that no findings or alleged violations had been communicated to it at the time of its response. The searches therefore remain an investigative development, with their outcome yet to be established.
Ramayana Connection Brings Film Into Focus
The company’s association with Ramayana has added an entertainment-industry dimension to the news. Directed by Nitesh Tiwari, the film features Ranbir Kapoor, Sai Pallavi, Yash and Sunny Deol among its prominent cast members. Its scale and extensive visual-effects work have made it a closely watched production.
However, the available information does not establish that the searches have disrupted the film’s production or release plans. Further disclosures from Prime Focus and information from tax authorities will be needed to clarify the transactions under review and any material consequences.
