Income Tax raids at homes of Vikramaditya Motwane, Vijay Subramaniam

According to India Today, I-T officials raided the residence of Motwane, who was among the founding members of Phantom Films, and Subramaniam, the CEO of Kwan.

Reportedly, the officials continued grilling Pannu, Kashyap, Madhu Mantena, and Vikas Bahl on Thursday after they were questioned for several hours on Wednesday.

The raids are expected to continue for the next three days, the report stated.

On Wednesday, I-T officials had conducted raids at 22 locations in Mumbai and Pune linked to Phantom Films and the Kwan Talent Management Agency.

The I-T Department has found that profits made by these celebrities do not match their returns, sources told India Today.

The individuals are being questioned on the basis of evidence already obtained by officials, the sources added.

Reportedly, the I-T Department put seven lockers under restraining orders.

I-T sources told India Today that Registrar of Companies (RoC) records obtained show that Phantom Films is still operational.

Its four founding members, who are being raided, remain partners on paper, the sources said.

Digital data obtained showed a huge amount of bungling in finances and massive tax evasion, the sources added.

Phantom Films was founded by Kashyap, Motwane, Mantena, and Bahl in 2011.

It was associated with several critically-acclaimed films such as Lootera (2013), Ugly (2013), Queen (2014), NH10 (2015), Hunterrr (2015), Bombay Velvet (2015), and Masaan (2015).

In March 2015, Reliance Entertainment had picked up a 50% stake in the company.

It was dissolved in October 2018 after Bahl was accused of sexual harassment.