The Income Tax (IT) Department launched a series of raids early Tuesday morning at the offices and residences of several prominent Telugu film producers, including Dil Raju and the team behind Mythri Movie Makers.
The large-scale operation, reportedly involving 55 officials, is being conducted simultaneously across eight locations, sending shockwaves through the Telugu film industry.
IT officials carried out searches at Dil Raju’s residences in Banjara Hills and Jubilee Hills, as well as at the homes of his brother Sirish and daughter Hansitha Reddy.
Dil Raju, a key figure in the industry, has delivered numerous blockbusters, including the recent Sankranti release Sankranthiki Vasthunnam, which reportedly grossed over ₹100 crore.
Mythri Movie Makers, known for their record-breaking success with Pushpa: The Rule, also came under scrutiny.
The production house, which achieved collections exceeding ₹1,700 crore with their recent releases, has drawn significant attention from tax authorities. The company's producer, Erneni, was among those subjected to the raids.
In addition to Dil Raju and Mythri Movie Makers, the IT department also targeted producer Abhishek Agarwal, known for films such as The Kashmir Files and Tiger Nageswara Rao.
Furthermore, searches were conducted at the offices of Mango Media, a leading distribution company in the Telugu film circuit.
Industry insiders speculate that the growing trend of publicizing inflated box office figures might have triggered the IT scrutiny.
“Producers should be cautious when announcing exaggerated revenues as a part of their marketing strategies. Such claims can easily attract the attention of tax authorities,” an industry source commented.
Shedding light on the complexities of box office collections, the source explained, “Gross revenue figures are often misunderstood. For example, if a film earns ₹100 crore gross, the net collection—after deducting expenses such as theater rentals and commissions—could be as low as ₹55 crore, with only ₹40–45 crore actually reaching the distributor.”
Dil Raju, who recently experienced contrasting fortunes with the failure of Game Changer and the success of Sankranthiki Vasthunnam, now finds himself under intense scrutiny.
The ongoing raids have sparked concerns among industry players about potential financial repercussions and regulatory challenges ahead.
