Prime Focus IT Raid: . The Income Tax Department has charged Rs. A major company investing in a budget of 4000 crores has taken strict action on Prime Focus Limited. On the morning of 7 October 2026, Income Tax Department teams suddenly started raiding various offices of the company in Mumbai. The operation was not limited to the company premises, but the investigation teams also raided the premises of some important people associated with Prime Focus and their Chartered Accountants (CAs). As soon as the news of this big action came out, the company’s shares have started selling heavily in the stock market.

The tax officials reached the Mumbai office early in the morning

According to a CNBC report, the Income Tax department’s search operation was launched early Wednesday morning in complete secrecy. Different teams of officials surrounded the office of Prime Focus in Mumbai and started an investigation. The investigation team is scrutinizing the books of accounts, computer data and financial documents kept in the offices. Apart from this, search operation is also going on at the places of important persons connected with the company.

The Income Tax Department keeps a close eye on foreign transactions

The main reason for this entire action is said to be related to foreign transactions (foreign remittances). According to the report, the move was taken after the Income Tax department had apprehensions of irregularities in the matter of money transfer abroad and cross-border transactions. However, the full details of which specific transactions are being investigated are yet to be disclosed. Prime Focus is a big name in the field of media and entertainment services, whose work spans visual effects (VFX), animation and post-production. According to data from the company’s Investor Center, 92 percent of the company’s revenue comes from overseas markets outside India. This is why large amounts of foreign currency transactions have always been a part of the company’s day-to-day operations.

The company’s shares fell

As news of the income tax raid spread across the market, Prime Focus shares were in a panic. Shares of the company were trading in the red around 10:11 am on Wednesday, down 8.1 percent. The stock took a huge dive of up to 8 percent during trading. Shares of the company were trading at Rs 268.90 around 2 pm.