Ramayana producer’s IT raid sees Prime Focus stock drop 8%

Mumbai: The Income Tax Department searched the Mumbai office, studio and Film City premises of Prime Focus Limited, along with the home of chairman Namit Malhotra, on Wednesday, a month before his film Ramayana: Part 1 is due in cinemas. Searches also covered premises linked to Malhotra’s chartered accountant.

What the searches covered

The operation began on October 7 and continued through Wednesday morning. Initial reports have linked the action to foreign remittances, but the department has not officially confirmed what transactions are being examined or whether any irregularity has been found.

According to India Today, the searches were based on inputs gathered during investigations last week at locations linked to actor Rakul Preet Singh, producer Vashu Bhagnani and Panorama Studios. No official statement has connected those cases directly to the Prime Focus searches.

Prime Focus stock under pressure

Prime Focus shares fell around 8 percent when trading began on Wednesday after the news emerged. That market reaction matters because the company is not just a visual effects and post-production player; around 92 per cent of its revenue comes from overseas operations.

For a company with that profile, the reported foreign-remittance angle is especially significant. For film fans, the more immediate question is what this means for the release Malhotra is producing.

A month before Ramayana’s Diwali date

Malhotra is producing Nitesh Tiwari’s two-part Ramayana, among the most anticipated Indian films of the year. Ranbir Kapoor plays Lord Rama, Sai Pallavi plays Sita and Yash plays Ravana. Sunny Deol, Rakul Preet Singh, Arun Govil and Ravi Dubey also feature in key roles.

• Searches: October 7, at Prime Focus office and studio in Mumbai, Malhotra’s home, and chartered accountant’s premises.
• Reported trigger: Foreign remittances, not yet officially confirmed.
• Market response: Prime Focus shares down around 8%.
• Release date: Ramayana Part 1 on November 5, around Diwali.

The first part is set to arrive on November 5, with the second part expected next year. No one involved has suggested the release is affected by the searches; an official Income Tax statement and any further stock movement will show whether this is a routine check or a larger production headache.

Source: India Today