₹4,000-Crore 'Ramayana' Producer Namit Malhotra’s Prime Focus Under IT Scanner Over Overseas Fund Transfers
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The Income Tax Department has launched extensive search operations across premises linked to Prime Focus Limited and its chairman Namit Malhotra, the lead producer behind the ₹4,000-crore cinematic epic Ramayana starring Ranbir Kapoor.
Tax officials targeted Prime Focus’s corporate headquarters and studio facilities in Mumbai, alongside Malhotra's residence and offices belonging to his financial advisers and Chartered Accountants. The search action, which commenced on October 7 and extended into Thursday morning, triggered an immediate sell-off on Dalal Street, sending Prime Focus Limited shares sliding nearly 8 per cent in early market trading.
Scrutiny Over Foreign Fund Transfers
Investigators are focusing on foreign remittance transactions, cross-border capital flows, and potential tax compliance gaps involving overseas corporate entities. Prime Focus Studios operates an extensive international footprint, leveraging its Oscar-winning visual effects subsidiary DNEG to drive global post-production pipelines for big-budget international and Indian ventures.
Tax authorities are auditing whether international capital movements processed through Prime Focus align with statutory filings and cross-border financial disclosures. Neither the Income Tax Department nor Prime Focus Limited has issued an official statement outlining the specific transaction details under scrutiny or the initial findings of the probe.
High Stakes Ahead of Diwali Release
The regulatory intervention arrives at a crucial juncture for the production company, occurring just weeks before the scheduled theatrical rollout of director Nitesh Tiwari's Ramayana: Part 1. Conceptualised as India's most expensive cinematic production, the ₹4,000-crore, two-part franchise features an ensemble cast led by Ranbir Kapoor as Lord Ram, Sai Pallavi as Sita, and Yash as Ravana.
Despite the ongoing corporate audit, sources close to the production team confirm that post-production workflows, global distribution arrangements, and technical schedules for the upcoming release remain fully on track without operational disruptions.
