The search
Income Tax Department teams searched the Mumbai residence and offices of producer Namit Malhotra from October 7 through the morning of October 8. The operation covered the Prime Focus studio in Film City, Malhotra’s home and the premises of his chartered accountant. Officials have not issued a statement confirming the precise reason; early reports point to inquiries into foreign financial transactions.
- Prime Focus studio in Film City
- Namit Malhotra’s residence
- Premises of his chartered accountant
The operation follows 12 searches carried out last week at premises linked to actor Rakul Preet Singh, her father-in-law and veteran producer Vashu Bhagnani, and production house Panorama Studios. India Today first reported that the Mumbai IT division acted on alleged financial irregularities and foreign capital transfers tied to film ventures. Speculation about a connection between the two sets of searches remains unconfirmed, and no figures under scrutiny have been disclosed.
Why it matters
The searches land roughly a month before Ramayana: Rise of a Legend reaches theatres in the Diwali 2026 window. The film is among the season’s most followed titles: Nitesh Tiwari directs Ranbir Kapoor as Lord Rama, Sai Pallavi as Sita, Yash as Ravana and Sunny Deol as Lord Hanuman. Its score pairs A.R. Rahman and Hans Zimmer in their first Indian film collaboration, and T-Series acquired music rights to both parts for a reported refundable advance of ₹75 crore.
Prime Focus, headed by Malhotra, is a global media and entertainment company working across visual effects, production, post-production and animation. The market response was immediate: Prime Focus shares fell about 8 percent after the searches were reported. A search is an investigative step, not a finding. The department has made no formal statement, and no charges have been announced.
What to watch
For viewers and the trade, the clearest signals ahead are whether the Income Tax Department issues a statement and whether the release machinery resumes its normal rhythm. A month from a tentpole opening is usually spent on promotion; this incident briefly shifts attention from the film to the production’s financial architecture.
In Hindi cinema, where large projects often involve multiple investment and production entities, searches of this scope tend to raise questions before they deliver answers. For now, the film’s release plan has not changed on paper. The wider lesson is familiar: sensitive investigations near a release can amplify uncertainty, even when the legal threshold is far from clear.
Source: The Hollywood Reporter India
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