The Income Tax (IT) Department conducted raids early Tuesday morning at the homes and offices of several well-known Telugu film producers, including Dil Raju and the team from Mythri Movie Makers. The operation involved 55 IT officials and took place at eight locations at the same time. This has caused a lot of buzz and concern in the Telugu film industry amid rumours over inflated box office earnings.

Raids were conducted 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 industry figure behind numerous successful films, including the recent ₹100 crore grosser Sankranthiki Vasthunnam, came under scrutiny.

Mythri Movie Makers, known for the success of Pushpa: The Rule and other high-grossing films, was also targeted. The company’s producer, Erneni, was among those raided. In addition, the IT department conducted searches at the offices of Mango Media, a major distribution company in the Telugu film sector.

Producer Abhishek Agarwal, known for The Kashmir Files and Tiger Nageswara Rao, was also implicated in the raids.

Industry insiders suggest that the publicizing of inflated box office figures might have triggered the IT scrutiny. There’s growing concern that exaggerated revenue claims, often used as marketing strategies, could attract tax attention. These inflated figures can mislead the public, with the actual revenue—after accounting for expenses—often being much lower than reported.

As the raids continue, industry players are worried about potential financial and regulatory implications in the future.