Tax Officials Search Offices of ‘Ramayana’ Producer’s Prime Focus

India’s Income Tax Department searched the Mumbai offices of Prime Focus on Wednesday, the media and visual-effects company led by “Ramayana” producer Namit Malhotra, according to CNBC-TV18 and Business Today. The searches began on the morning of Oct. 7 and were still underway that afternoon, weeks before Malhotra’s mythological epic is due in cinemas.

Sources told CNBC-TV18 that the searches are connected to foreign remittances and that premises of certain individuals linked to Prime Focus were also being searched. Business Today, citing AajTak, reported that officials were examining financial records at Prime Focus and at locations associated with the company’s chartered accountant. Neither the department nor the company has publicly detailed which transactions are under scrutiny.

Prime Focus confirmed the action. In an exchange filing reported by Bloomberg Tax, the company said search proceedings had been initiated at certain offices and were ongoing. “We are fully co-operating with the officials of the Income Tax Department and are providing them the necessary information, documentation and clarifications sought by them,” the company said, adding that business operations were continuing as usual.

The company’s shares fell as much as 8% in Wednesday trading, CNBC-TV18 reported, while Bloomberg Tax put the intraday drop at as much as 9.5%, the steepest since June 2025. CNBC-TV18 noted that the stock had risen 17% this year and that Prime Focus says 92% of its revenue comes from markets outside India.

The timing has drawn attention because of “Ramayana.” Directed by Nitesh Tiwari and produced by Malhotra, the film stars Ranbir Kapoor, Sai Pallavi, Yash, Sunny Deol and Ravie Dubey and is scheduled for a theatrical release around Diwali, Business Today reported. Prime Focus Studios lists the film among its current productions. The Times of India reported that Prime Focus’ visual-effects company DNEG is handling the film’s effects, and that the searches came days after a minor fire was reported near the film’s sets at Prime Focus Studios in Mumbai.

Business Today reported that the searches follow Income Tax operations in late September at locations linked to actor Rakul Preet Singh, filmmaker-producer Vashu Bhagnani and Panorama Studios over suspected financial irregularities. The outlet said the Prime Focus searches are believed to be connected to documents recovered in those earlier operations. Rakul Preet Singh has denied that the earlier search was connected to her, Business Today noted.

The company has faced other regulatory matters this year, CNBC-TV18 reported. In June, the Securities and Exchange Board of India closed adjudication proceedings against Prime Focus and its directors, and in July an appellate tribunal set aside an insolvency admission and approved a settlement. The outlet said there was no immediate indication the tax action is connected to either matter. For more film industry news from Mumbai, visit our Bollywood page.

Verification: Details of the searches, the share move and the company’s background come from CNBC-TV18 (Yash Jain, Oct. 7) and Business Today (Oct. 7). The DNEG and set-fire details are from The Times of India; the company’s statement and the 9.5% figure are from Bloomberg Tax (Samie Modak, Oct. 7).