Tollywood has been rocked by a series of large-scale income tax audits and raids, leaving the industry in shock. These audits, which have become more frequent after the implementation of GST and TDS, are now targeting some of the biggest and medium-sized companies in the industry. While income tax raids had reduced significantly in recent years, GST and TDS-related searches have become commonplace, and now, there’s growing concern as large teams of tax officials are conducting simultaneous raids on multiple companies.
Among the companies under scrutiny is Mythri Movies, a major player in Tollywood with substantial investments from NRIs and politicians. This company has also been involved in financial dealings with other companies, though it’s believed that these are legitimate bank transactions. Despite this, these activities have caught the attention of the Income Tax Department. Reports indicate that other companies, including Abhishek Agarwal’s organization, have also faced similar scrutiny, though these companies have not reported significant profits. The focus on Mythri Movies, in particular, appears to stem from their financial connections with other companies, such as People’s Media, and the potential for cross-verification leading to further inquiries.
The situation has also raised questions about the financial health of some well-known producers, including Dil Raju, who is facing his own set of challenges. Recent attempts by Dil Raju to secure funding from international sources have come under suspicion, adding to the ongoing investigations. The connection between foreign investments and several Tollywood entities, including Mythri and AK Entertainments, has raised red flags for the tax authorities. With foreign funding being a key point of interest, the raids appear to be targeting these international connections as part of a larger financial investigation within the industry.
In addition to these company-wide raids, the IT department has also searched the home of financier and NTR fan, Prathapareddy, whose involvement in the financial dealings of the industry remains unclear. With raids ongoing for the next couple of days, industry insiders are watching closely to see if more names will be revealed, as the investigation continues to unfold.