PVR Inox shares tumble 8% after reports of internal probe

Shares of PVR Inox, India’s largest multiplex chain, plunged nearly 8% on Monday, hitting their lowest level since early March, after reports of an internal investigation into alleged kickbacks involving a senior executive. According to reports citing people familiar with the matter, the company asked Pramod Arora, its former CEO for growth and investment, and a few other employees to leave in April following the probe. The allegations centre on kickbacks allegedly received from developers involved in building cinema properties. These payments are said to have continued over several years and could total as much as ₹200 crore. Arora played a key role in PVR’s expansion into Tier-II and Tier-III cities through asset-light formats such as franchise-owned, company-operated (FOCO) cinemas. The company became aware of the issues around April, after which the executives were asked to exit with immediate effect. Arora later resigned effective May 24, citing personal reasons. He also signed a declaration restricting him from joining rival cinema chains or approaching the company’s vendors.