The Income Tax Department is carrying out search and survey operations which started on 03.03.2021 on two leading film production companies, a leading actress and two Talent Management companies in Mumbai. Search operation is being carried out at Mumbai, Pune, Delhi and Hyderabad. The group is mainly engaged in the business of Production of Motion Pictures, Web Series, acting, direction and talent Management of celebrities and other artists. A total of 28 premises are being covered in different locations which includes residences and offices.

During the search, evidence of huge suppression of income by the leading Film Production house compared to the actual box office collections has been unearthed. The company officials have not been able to explain discrepancy of around ₹ 300 crore. 

Evidence related to manipulation and under-valuation of share transactions of the production house amongst the film directors and shareholders, having tax implication of about ₹ 350 crore has been found and is being further investigated.

Evidence of cash receipts by the leading actress amounting to ₹ 5 crore has been recovered. Further investigation is going on. 

Apart from this, non-genuine/bogus expenditure to related concerns by the leading producers/directorhaving tax implication of about ₹ 20 crore has been detected. Similar findings have been made in the case of the leading actress also.

At the office premises of the two talent management companies,  huge amount of digital data has been seized in the form of emails, whatsapp chats, hard disk etc which are under investigation.

During the search, 7 bank lockers have been found which have been placed under restraint. Search is continuing in all the premises.

Tax search and seizure uncovers undeclared income and transaction manipulation in entertainment sector, prompting further investigation. Coordinated search and seizure operations targeted film production companies, a leading actress and talent management firms, covering 28 premises. Initial findings include significant suppression of income by a production house, alleged manipulation and under valuation of share transactions, recovered cash receipts linked to the actress, and detection of non genuine expenditures by producers/directors. Large volumes of digital data were seized and seven bank lockers placed under restraint; investigations and forensic analysis of seized material are ongoing.