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PVR INOX ousted executive after probe into ₹200 crore kickbacks
The Economic Times··5 Sept
PVR INOX dismissed growth chief Pramod Arora in April after learning of alleged developer kickbacks worth up to ₹200 crore over several years, people familiar with the matter said. The multiplex chain, formed from the 2023 PVR and INOX merger, operates 1,786 screens across 356 properties in 113 cities. The board has discussed the matter in recent meetings.
Prism
What It Means For You
- Cinema-goers at PVR INOX sites are unaffected directly, but franchise expansion plans may face closer scrutiny.
- Arora led Tier II and Tier III expansion through FOCO and SMART screen formats.
- The company plans to add 1,000 screens over five years, largely via franchise-led growth.
What's Happening
- The company learned of the alleged payments sometime in April and asked Arora to leave immediately.
- Kickbacks allegedly involved a senior executive close to the promoters, the sources said.
- PVR INOX reported Rs 56.5 crore consolidated net profit in the April-June quarter of FY27.
PVR INOX Expansion Model
- Ajay Bijli runs the company for the first five years under the 2023 merger contract from March 2022.
- As of late August PVR INOX operated 1,786 screens across 356 properties in India and Sri Lanka.
- The investigation sought to establish whether others were involved in the alleged malpractices.
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