Mumbai: PVR INOX, India's biggest film exhibitor, asked a senior executive to leave in April following an internal investigation into alleged kickbacks from developers involved in building cinema properties, people familiar with the matter told ET.
The alleged kickbacks were made over several years and could aggregate up to ₹200 crore, said one of the people cited above. The allegations involve a senior executive who was close to the company's promoters, raising questions about how long the alleged payments continued and whether others were aware of the malpractices, the people said. The circumstances could also bring scrutiny on PVR INOX co-promoters Ajay and Sanjeev Bijli, who have been running the company since the merger of PVR and INOX became effective in February 2023, said the people cited above.
The executive in question, Pramod Arora, was the chief executive officer for growth and investment at PVR INOX, the people said.
The investigation also sought to establish the extent of the alleged wrongdoing and determine whether others were involved, said the sources. The matter has also been discussed by the company's board in recent meetings, they said.
"This was going on for several years.," said a person with direct knowledge of the matter.
"The company got to know about it sometime in April, following which Arora and a few others were asked to leave with immediate effect," the person said.
PVR INOX did not respond to questions sent by ET. WhatsApp messages sent to Pramod Arora were not answered until the publication of this report. ET could not independently establish the identities of the developers allegedly involved in the kickbacks scandal.
As part of the PVR INOX merger contract, Ajay Bijli is responsible for running the company for the first five years starting March 2022, when the union was announced.
Arora played a key role in PVR's expansion into Tier II and Tier III markets through asset-light formats, including franchise-owned, company-operated (FOCO) cinemas and the SMART/Smart Screen initiative.
These formats offer lower-priced, digital-first multiplexes aimed at value-conscious audiences in smaller towns.
PVR INOX, India's largest multiplex chain, was created through the 2023 merger of PVR and INOX Leisure. As of late August, it operated 1,786 screens across 356 properties in 113 cities in India and Sri Lanka. The company plans to add another 1,000 screens over the next five years, largely through franchise-led expansion.
The allegations come as PVR INOX's financial performance has improved. The company reported consolidated net profit of Rs 56.5 crore in the April-June quarter of FY27, compared with a loss of Rs 54.5 crore a year earlier. Revenue from operations rose 11.9% year-on-year to ₹1,622.2 crore, while EBITDA increased 30.8% to Rs 528 crore.
Its EBITDA margin expanded to 32.5%, helped by higher occupancy, a stronger film slate and increased contributions from advertising and food and beverage.
PVR INOX had net cash of Rs 80.7 crore at the end of the quarter. Its board has also approved a Rs 300-crore share buyback at Rs 1,450 a share.
Promoters hold about 27.5% in the company, with the remaining stake held by foreign investors, domestic institutions and public shareholders.
According to a declaration signed by Arora, he was restricted from joining rival cinema chains and from contacting PVR INOX's existing vendors. The declaration also provides for potential legal action in the event of a breach.
