The Income Tax Department has conducted searches at offices of Prime Focus Limited, the media and entertainment company headed by Ramayana producer Namit Malhotra, less than a month before the release of Nitesh Tiwari’s much-anticipated mythological epic.
Prime Focus confirmed in a stock-exchange clarification that Income Tax officials began search proceedings at certain company offices on the morning of October 7, 2026. The company said the searches were still underway when it issued its response and that it was fully cooperating by providing information, documents and clarifications requested by officials.
Crucially, Prime Focus also said it had not received any communication setting out a finding, demand or alleged contravention from the Income Tax Department as of October 7. The company added that its business operations were continuing as usual and had not been affected by the search proceedings.
What is actually known about the searches?
Several media reports, including India Today and NDTV, say the Income Tax action extended beyond Prime Focus’ Mumbai offices to other locations linked to Malhotra, including his residence and premises associated with financial advisers. Reports have also linked the inquiry to foreign remittances or overseas fund transfers.
That reported foreign-remittance angle, however, should not yet be treated as an official finding.
The Income Tax Department has not publicly detailed the specific transactions under examination or announced that any tax violation has occurred. Prime Focus itself said in its exchange clarification that it was not in a position to comment on other matters mentioned in media reports and did not want to speculate about the subject of the searches.
In other words, the searches are confirmed, but their precise scope and any eventual outcome remain unknown.
The timing puts ‘Ramayana’ in the spotlight
The development has drawn particular attention because Malhotra is preparing for the release of Ramayana: Part 1 on November 5, 2026, just four weeks after the searches began. The film, directed by Nitesh Tiwari, stars Ranbir Kapoor as Lord Rama, Sai Pallavi as Sita and Yash as Ravana, with Sunny Deol, Ravi Dubey, Lara Dutta and other major names in the ensemble.
Prime Focus is closely connected to the production, while the wider group’s visual-effects expertise through DNEG has been a major part of the scale surrounding the two-part adaptation. The project has been positioned as one of the most ambitious Indian films mounted in recent years.
There is currently no confirmed indication that the Income Tax searches have affected the film’s November 5 release plans. Prime Focus has specifically said its regular business operations remain unaffected.
The news did have an immediate effect on the company’s stock. Prime Focus shares fell sharply during trading on October 7 after reports of the searches emerged, touching an intraday low of around ₹265 before recovering some ground.
For now, the most important distinction is between an investigation and a conclusion. Income Tax officials have searched Prime Focus premises, and the company is cooperating, but no official tax demand or finding of wrongdoing has been announced. With Ramayana only weeks away from release, any further statement from either the department or Prime Focus will determine whether the development remains a corporate investigation running alongside the film—or begins to have a more direct impact on the production.
