Manchu Vishnu Income Tax Raids: Officials Inspect ₹150Cr Film Finances
In a sudden development just days before the theatrical release of Kannappa, Income Tax and GST officials conducted raids on actor-producer Manchu Vishnu’s offices in Hyderabad on Wednesday.
The raids reportedly focused on financial records and tax filings related to Kannappa, Vishnu’s ambitious mythological venture with a reported budget of ₹150 crore. According to officials, the inspections were aimed at identifying any irregularities in GST returns, production-related payments, and investment inflows associated with the film. ALSO READ: AA22xA6: Allu Arjun Shifted to Mumbai for Shoot
Why the Raids Matter
The Manchu Vishnu Income Tax Raids have sparked widespread discussion in film and business circles, given the scale of the movie and its significance to Tollywood’s 2025 release calendar.
Sources within the Central Board of Direct Taxes (CBDT) confirmed that the raids were part of a routine compliance check conducted on high-budget productions. While no official statement has been released by Vishnu or his production team, the searches have drawn media attention due to their timing — Kannappa is slated to release on June 27, 2025.
“These are standard procedures for large-scale financial ventures. No conclusions should be drawn until investigations are complete,” said a senior official from the Income Tax Department, requesting anonymity.
Focus on ₹150Cr Budget
Kannappa, directed by Mukesh Kumar Singh, has been a passion project for Manchu Vishnu for several years. The film features Prabhas, Mohanlal, and Akshay Kumar in special roles, alongside a sprawling ensemble cast.
With Kannappa reportedly securing international distribution and satellite rights, the financial structure has drawn scrutiny from tax officials. Raids at multiple Hyderabad locations, including Vishnu’s production office and associated contractors, were reportedly conducted from early morning till late evening on Wednesday.
According to The Hindu, officials have collected over a dozen files related to payments made over the past two years and are examining records dating back to the initial scripting stage. ALSO READ: “Why Don’t You Behave Like a Normal Person?” – Bharadwaj Questions Vishnu Manchu in Viral Interview
Precedent and Procedure
The Manchu Vishnu Income Tax Raids are not the first of their kind in Indian cinema. Previous high-budget films such as Baahubali and Pushpa have also seen financial scrutiny. IT officials maintain that such audits are “routine for productions exceeding ₹100 crore.” ALSO READ: He want’s my ‘downfall’
Industry Reaction
The Telugu film industry has largely maintained silence, awaiting further clarity. However, trade analysts suggest the raids are unlikely to impact the film’s release date.
“Unless there’s proven tax evasion, this won’t stall Kannappa,” says senior trade analyst Rajeev T., adding that hype around the film could even increase due to the attention.
Manchu Vishnu, who recently completed visits to all 12 Jyotirlinga temples as a promotional and spiritual journey ahead of the film’s release, has yet to issue a public statement regarding the raids. ALSO READ: “Soundarya’s Death: New Allegations Against Mohan Babu”
Historical Context of Film-Industry Tax Audits
Film productions with large budgets, especially those crossing ₹100 crore, have previously undergone tax scrutiny. For instance, movies like Baahubali and Pushpa faced similar financial inspections, though none resulted in formal charges . These routine checks aim to ensure compliance in areas like GST on shooting expenditures, crew payments, and distributor rights.
What’s Next?
With just two days left before release, the focus now shifts back to the film itself, as fans eagerly await its arrival on the big screen. Meanwhile, investigations will continue in parallel, though no official charges have been filed so far.
Whether coincidence or caution, the Manchu Vishnu Income Tax Raids have added another chapter to the already high-profile journey of Kannappa.
