A recent Competition Commission of India investigation has exposed shocking details about secret deals between PVR INOX and major production houses. The most surprising revelation is that War 2 and Saiyaara could have been released completely free from Virtual Print Fee charges.
The controversy started when the makers of Jolly LLB 3 refused to pay VPF. This led to PVR INOX stopping advance bookings for the Akshay Kumar starrer, sending shockwaves across the industry. While the makers eventually paid under protest, this incident opened a can of worms.
Secret Sunset Clause Deals
According to submissions by the Film and Television Producers Guild of India, PVR INOX had entered into special arrangements with Yash Raj Films and Viacom 18. These deals included something called sunset clauses, which are agreements to phase out the payment of VPF by December 2024.
This meant that these two powerful studios would no longer have to pay VPF charges for their films releasing in 2025 onwards. Meanwhile, hundreds of small and medium producers would continue paying the fee for every single film released across PVR screens. The Producers Guild called this practice blatantly discriminatory.
Creating A Two Tier System
The Guild stressed that such deals showed how PVR was using its dominant market position to favor powerful production houses. Similar concessions were being denied to smaller producers. This directly goes against provisions of the Competition Act, which prohibits unfair and discriminatory conditions.
Had these agreements been implemented, YRF’s 2025 releases War 2 and Saiyaara would have enjoyed VPF free releases. This is unlike most Indian films that continue to bear this cost. The unfair advantage being given to select studios was massive.
PVR’s Defense
PVR defended its conduct by telling the CCI that the sunset clauses for YRF and Viacom had not yet been implemented. They claimed these deals were still subject to renegotiation. The company stated that these studios were eligible for sunset clauses only if they stopped paying VPF to other exhibitors.
PVR further argued that they offered these concessions because competing exhibitors like Cinepolis were in talks with the same studios. They risked losing these big films if they did not match those terms. According to them, they were just acting to meet the competition, which cannot be treated as discriminatory under the Act.
CCI Orders Full Investigation
The CCI observed prima facie evidence of discriminatory conduct by PVR INOX. The Commission has now ordered a full investigation by its Director General into PVR INOX’s conduct. This move has reignited the industry wide debate on fairness and transparency in the Virtual Print Fee system.
About War 2 And Saiyaara
War 2 and Saiyaara are upcoming films from Yash Raj Films releasing in 2025. Both films could have been released VPF free under a special sunset clause deal with PVR INOX that has now come under CCI investigation.
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