The Income Tax Department searched offices linked to Namit Malhotra’s Prime Focus in Mumbai on Wednesday morning. Malhotra is the producer backing the Rs 4,000-crore Ramayana epic. CNBC-TV18 reported that the searches covered Prime Focus, his VFX and post-production company, and his chartered accountant.

The searches are linked to evidence allegedly found during searches at film personalities’ premises last week. Prime Focus shares fell 8 per cent after the news broke. The department has not issued a formal statement on its findings.

The action follows a wider industry crackdown. Last month, the department searched at least 12 Mumbai premises linked to Rakul Preet Singh, Vashu Bhagnani and Panorama Studios over suspected overseas financial irregularities. Officials are probing whether funds were moved abroad under the guise of foreign location shoots and overseas production expenses. Investigators suspect these routes may have been used for tax evasion and accounting discrepancies. Ramayana Part 1, starring Ranbir Kapoor as Lord Ram, is set for a Diwali release on November 6.