The ongoing raids by Income Tax sleuths across multiple locations in Hyderabad starting early Tuesday morning created ripples in the Telugu film industry, as the focus of the operation appears to be on leading Telugu film producers and their financial dealings.
The general impression is that the I-T department authorities are targeting the film producers following the blockbuster hits of their latest films – Pushpa-2 and Sankrantiki Vasthunnam, which are supposed to have had record collections at the box office.
While Pushpa-2 was made by Mythri Movie Makers (MMM), the other films were connected to Dil Raju both as producer as well as distributor. MMM’s latest film Pushpa 2, featuring Allu Arjun, reportedly grossed over Rs 1,800 crore worldwide.
“The I-T department is investigating the financial transactions related to these films, particularly focusing on undisclosed income and potential tax evasion,” sources said.
The I-T officials also raided the homes of Maitri Movies’ CEO Cherry and other key stakeholders. The simultaneous raids across multiple locations suggest a large-scale investigation into the financial activities of these production houses.
Sources, however, said the I-T authorities are focussing more on the diversion of huge profits made from Pushpa-2 into a real estate venture being developed by MMM promoter Naveen Yerneni near Sangareddy on the outskirts of Hyderabad.
It is learnt Yerneni had bought 300 acres of land near Sangareddy for around Rs 1,500 crore, which he is developing as a huge real estate venture. The I-T department is looking into the source of money invested on this venture, sources said.
Sources indicate that these raids are aimed at uncovering financial irregularities in the Telugu film industry, which has seen several high-budget projects in recent years.
While the investigation continues, the industry is closely monitoring the developments.