Income Tax searches at Ramayana producer Prime Focus’ Mumbai offices; shares FALL 8%

Just a few days after news came out about the Income Tax Department searching places connected to producers Vashu Bhagnani and Kumar Mangat Pathak, it has now been revealed that tax officials also searched the Mumbai offices of Prime Focus Ltd.This happens at a very important time for the company, as its big new movie, Ramayana, is preparing for a release on Diwali, which is just a month away.

According to an exclusive report by CNBC-TV18, the Income Tax Department began searching Prime Focus' Mumbai offices on Wednesday, October 7.

The report also mentioned that searches were happening at the homes of some people connected to the company.

Sources told CNBC-TV18 that the searches are related to money sent abroad.

But more details about the transactions being checked or the exact reason for the investigation were not available right away.

The news affected the stock market, with shares of Prime Focus dropping by 8% as soon as the reports came out on Wednesday morning.

Prime Focus, which is run by Namit Malhotra, is one of India's top media and entertainment companies.

It offers services like visual effects, animation, post-production, and content creation.The company also has a strong presence overseas.

This timing is especially significant because Prime Focus Studios is producing Nitesh Tiwari's highly anticipated movie Ramayana.

The film features Ranbir Kapoor, Sai Pallavi, Yash, Sunny Deol, and Ravie Dubey and is set to release this Diwali.

So far, neither Prime Focus nor the Income Tax Department has given a detailed statement about the searches that happened on Wednesday.

More information is expected.