IT raids on top Tollywood producers: Box office collections under scrutiny

The Income Tax raids are said to have targeted eight locations, including the homes and offices of producer Dil Raju, who recently celebrated the massive success of Sankranthiki Vasthunam. He also invested heavily in the ₹300-crore project Game Changer, which flopped. Sources indicate raids were simultaneously carried out at his relatives’ properties too in Hyderabad — his brother and daughter Hansitha’s homes. Mythri Movie Makers, another major player, is reportedly under the scanner as well. The production house, known for blockbusters like Pushpa: The Rule, which grossed over ₹1,000 crore, and other hits such as Waltair Veerayya and Veera Simha Reddy, is also producing a high-budget Hindi film titled Jaat featuring Sunny Deol.

The raids haven’t spared smaller players too. Reports say producer Abhishek Agarwal, known for films like The Kashmir Files and Tiger Nageswara Rao, as well as Mango Media, a distributor of small-budget films, are also being investigated.

Stop boasting ‘Collection figures’

A Tollywood insider shared, “Producers should be cautious about publicly boasting exaggerated box office collections. While it’s a common publicity tactic to attract audiences, such claims inevitably draw the attention of government agencies, including the IT department. Even superstar actors should advise their producers to be more restrained with public figures to avoid unnecessary scrutiny.”

He further clarified the misunderstanding around box office terms, explaining, “There’s a vast difference between gross and net collections. For example, if a film earns ₹100 crores as gross revenue, only ₹55 cr may remain after deductions for GST and theatre rentals. After further distributor commissions, the actual earnings might be ₹40 or ₹45 cr. These exaggerated figures often paint an inaccurate picture of a film’s profitability.”As the IT department intensifies its scrutiny, producers in Tollywood are being urged to tread carefully, keeping their financial practices and public claims transparent to avoid legal complications.

Producers should be cautious about publicly boasting exaggerated box office collections. While it’s a common publicity tactic to attract audiences, such claims inevitably draw the attention of government agencies, including the IT department. Even superstar actors should advise their producers to be more restrained with public figures to avoid unnecessary scrutiny.”

Rumour is Mythri Movie Makers currently the biggest production house in Tollywood has raked in over ₹1000 cr for Pushpa 2, and the same amount for Pushpa 1

There’s a vast difference between gross and net collections. For example, if a film earns ₹100 cr as gross revenue, only ₹55 cr may remain after deductions for GST and theatre rentals. After further distributor commissions, the actual earnings might be ₹40 or ₹45 cr.” — A Tollywood source