PVR INOX says probe found no kickbacks

By Sohail Khan 7 September 2026, 5:28 pm

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Business News›Industry›Media/Entertainment›Entertainment›PVR INOX says preliminary probe found no evidence of kickbacks, disputes account of senior executive’s exit

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PVR INOX says preliminary probe found no evidence of kickbacks, disputes account of senior executive’s exit
Synopsis

PVR INOX on Monday said a preliminary assessment into anonymous allegations of employee impropriety found no evidence of kickbacks, countering reports of an alleged ₹200-crore scandal. The company also clarified that former senior executive Pramod Arora resigned for personal reasons on May 4 and was not asked to leave.

PVR INOX bets on smaller multiplexes as single-screens decline — PVR INOX said its preliminary assessment found no evidence of kickbacks and clarified that former executive Pramod Arora resigned for personal reasons and was not asked to leave.

PVR INOX on Monday said a preliminary assessment conducted after anonymous allegations of impropriety against certain employees found no evidence of kickbacks, directly contradicting reports of an alleged Rs 200-crore kickback scandal involving developers of cinema properties.

The country's largest film exhibitor also disputed the circumstances surrounding the departure of Pramod Arora, a former senior executive named in the reports, saying he resigned on May 4 for personal reasons and was not asked to leave.

The clarification was issued after the National Stock Exchange and BSE sought an explanation from PVR INOX over a media report titled “PVR Inox shares fall 8% amid internal probe into alleged Rs 200-crore kickbacks”.

PVR INOX said its two promoters received anonymous communications in early April containing allegations of impropriety by certain employees. The communications, it said, did not explicitly name Arora but used acronyms or initials instead.

More importantly, the company said the communications contained no specific actionable details, such as instances, dates or the names of developers allegedly involved in providing kickbacks.

“Despite the communications being anonymous and bereft of verifiable details, as a measure of good corporate governance, the Company engaged external third-party experts to conduct a preliminary assessment,” PVR INOX said.

“The preliminary examination also did not indicate any evidence of kickbacks,” the company added.

PVR INOX shares crash 8%

PVR INOX shares fell as much as 8% in Monday's trade, touching Rs 1,126.60 on the NSE, after an report published on Saturday brought the alleged kickback matter to light.

The report said PVR INOX had asked Arora, then its chief executive officer for growth and investment, to leave in April following an internal investigation into alleged kickbacks from developers involved in building cinema properties.

People familiar with the matter had told ET that the alleged kickbacks, made over several years, could aggregate to as much as Rs 200 crore. The investigation was also aimed at establishing the extent of the alleged wrongdoing and whether others were involved, they said.

The report said the matter had been discussed by the company's board in recent meetings. It also raised questions over whether others were aware of the alleged payments.

PVR INOX had not responded to ET's questions before the publication of the Saturday report.

What the company says about Arora's exit

PVR INOX's Monday filing gives a different account of Arora's departure.

The company said that while the anonymous communications were received in early April, Arora resigned on May 4, 2026, “due to personal reasons”. It said his resignation was accepted subject to his continuing obligations towards the company, while PVR INOX reserved all its rights and remedies.

“The Company wishes to clarify that Mr. Arora was not asked to leave,” the company said.

PVR INOX said it subsequently informed the stock exchanges about Arora's exit through an intimation dated May 25.

The company did not identify the employees referred to in the anonymous communications or provide further details of the allegations in its clarification. It reiterated that the communications did not contain verifiable details and that its preliminary examination did not indicate evidence of kickbacks.

The clarification comes as PVR INOX's financial performance has improved. The company reported a consolidated net profit of Rs 56.5 crore for the April-June quarter of FY27, against a loss of Rs 54.5 crore a year earlier. Revenue from operations rose 11.9% year-on-year to Rs 1,622.2 crore, while EBITDA increased 30.8% to Rs 528 crore.

Its board has also approved a Rs 300-crore share buyback at Rs 1,450 a share.

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