The coordinated search operations began on Wednesday morning, covering multiple commercial branches across Mumbai—including studio spaces in Film City, Goregaon—as well as locations linked to key management personnel. The action reportedly stems from ongoing scrutiny into overseas financial transactions, cross-border invoicing, and foreign remittances tied to the company's global subsidiaries and VFX networks.
The news sparked sharp market volatility, causing shares of Prime Focus Limited to drop by over 8% during trading hours.
Scope of the Searches: Scrutiny on Foreign Remittances
According to tax officials, the investigation focuses on verifying financial documentation and capital movements across jurisdictions:
Global Footprint Scrutiny: Prime Focus operates one of the world's largest visual effects and post-production networks, encompassing DNEG across London, North America, and Mumbai. The investigation is examining international remittances, service fee routing, inter-company billing, and overseas credit mechanisms between parent and subsidiary entities.
Premises Covered: Teams of tax auditors arrived at PriIndustry & Trade Take:
For high-end Indian VFX powerhouses managing multi-currency global operations, periodic tax audits into transfer pricing and remittance flows are an established regulatory reality. While the market reacted sharply on Wednesday, production executives maintain that standard tax compliance proceedings will not alter the domestic or global theatrical runway for Ramayana.me Focus's corporate headquarters and studio floors in Goregaon and Andheri, as well as Malhotra’s residential properties.
Data Seizure: Accounting ledgers, server logs, vendor contracts, and correspondence concerning recent international production funding structures were taken for forensic analysis.
'Ramayana' Production Slate: Zero Impact on Theatrical Timeline
The I-T searches arrive just days after an electrical fire on the temporary set of Ramayana inside Film City, Goregaon, placing the big-budget production under heightened scrutiny:
Production Structure: The live-action epic is being mounted on a massive international scale by Prime Focus Studios, Monster Mind Creations (headed by superstar Yash), and DNEG.
Theatrical Schedule: Despite the dual operational setbacks this week, production sources confirm that post-production timelines for the Ranbir Kapoor, Sai Pallavi, and Yash starrer remain unaffected. Ramayana: Rise Of A Legend (Part 1) remains locked for its global rollout this Diwali 2026.
