Ramayana Producer IT Raid Update: The much-awaited Ramayana has been making headlines ahead of its theatrical release, but its production house is now facing fresh attention for a different reason. Prime Focus Ltd, led by Namit Malhotra, has reportedly been searched by the Income Tax Department in Mumbai. Yes, you read that right!
WHY DID INCOME TAX DEPT SEARCH PRIME FOCUS OFFICES AHEAD OF RAMAYANA?
According to reports, Income Tax officials conducted searches at Prime Focus offices on Wednesday morning, October 7. The development comes just weeks before the release of Ramayana, the ambitious two-part mythological film starring Ranbir Kapoor, Sai Pallavi and Yash in key roles.
As per a report by CNBC-TV18, the Income Tax searches are reportedly linked to foreign remittances. These refer to money transferred from India to overseas accounts or entities. However, there is currently no detailed information available about the specific transactions being examined or what prompted the department to conduct the searches.
The reported development has also had an impact on Prime Focus’ stock market performance. The company’s shares reportedly dropped by around 8 per cent during Wednesday morning trading after news of the searches emerged. It is important to note that an Income Tax search does not by itself establish wrongdoing. The exact findings of the department’s inquiry, if any, are not known at this stage.
For those unaware, Prime Focus is a major media and entertainment services company with a strong presence in visual effects, animation, post-production and content production. The company, headed by Namit Malhotra, also operates across international markets.
Reports have stated that around 92 per cent of Prime Focus’ revenue comes from markets outside India. Given the company’s global operations, foreign remittances are therefore an important part of its business activities.
Prime Focus has also faced regulatory attention earlier this year. In June, the Securities and Exchange Board of India (SEBI) reportedly closed adjudication proceedings related to accounting treatment and financial disclosures after finding no irregularities.
RAMAYANA RELEASE DATE: WHEN WILL RAMAYANA PART 1 ARRIVE IN THEATRES?
The Income Tax searches come at a crucial time for Prime Focus Studios, which is associated with the production of Ramayana. Directed by Nitesh Tiwari, the film is being planned as a two-part epic and has already generated considerable buzz because of its cast and scale.
Ranbir Kapoor will play Lord Ram, while Sai Pallavi will be seen as Sita and Yash will portray Ravan. The ensemble cast also includes Sunny Deol, Rakul Preet Singh, Arun Govil and Ravie Dubey.
According to the latest reports, the first part of Ramayana is expected to release in India on November 5, during the Diwali period. The second instalment is expected to arrive next year.
