In the shocking incident, the Income Tax officials conducted multi raids on the producers of Baahubali on Friday. The raids were launched on producers Shobu Yarlagadda and Prasad Devineni offices, houses, private properties.

Presently, the raid is taking place in Arka Media Works. The IT officials got a tip-off about the producers having large amounts of unaccounted cash, IT officials have launched the raid. According to to the sources, IT officials have kept a close check on Baahubali producers in the past two days before launching the raids.

Baahubali became the top grossing Telugu film. The movie has been made with a huge budget of Rs 120 Crore and has received over Rs 650 Crore gross. Producers are presently bankrolling Baahubali: The Conclusion with a huge budget again and now the film's business has been closed for top numbers.

After Prime Minister Narendra Modi's unusual decision to ban Rs 500, Rs 1000 notes, this was the first time IT raids took place in the Telugu states. And with the IT raid being in Telugu film industry's that also on the leading production house, the move has sent a blow  among Tollywood producers and investors.

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BY M. DIVYA SRI