One of India’s biggest cinema chains has been jolted by the sudden exit of a top executive. PVR INOX asked Pramod Arora, its chief executive officer for growth and investment, to leave in April after an internal investigation began looking into alleged kickbacks tied to cinema property deals, with the suspected payments said to run as high as Rs 200 crore over several years.
Internal Probe Turns Spotlight On Expansion Deals
The internal review is examining how far the alleged wrongdoing went, how long it continued, and whether any other employees or outside individuals were involved. The matter has also been discussed at recent board meetings, a sign of how seriously the company is viewing the issue.
Arora had been a key figure in PVR’s real estate and expansion push before the merger era gave way to the larger PVR INOX network. That makes the probe especially significant, because it is tied to the very part of the business that helped the exhibitor add new cinema properties across markets.
Exit, Restrictions And Vendor Safeguards
After the company became aware of the allegations in April, Arora and a few other employees were asked to leave with immediate effect. A declaration signed by Arora also barred him from joining rival cinema chains and from approaching PVR INOX’s existing vendors. The document further provides for legal action if those restrictions are breached.
Those conditions show that the fallout did not end with one executive’s departure. They also underline how closely the matter touches the company’s long-standing network of developers and vendors.
That is also why the timing of the episode stands out. The controversy has surfaced just as PVR INOX has been showing stronger numbers and laying out an ambitious expansion plan.
Why The Timing Matters For Pvr Inox
PVR INOX, formed through the merger of PVR and INOX Leisure in 2023, had 1,786 screens across 356 properties in 113 cities in India and Sri Lanka as of late August. The company is also planning to add 1,000 more screens over the next five years, with franchise-led growth expected to play a major role.
Against that backdrop, the internal probe arrives at a particularly sensitive moment. In the April to June quarter of FY27, PVR INOX posted a consolidated net profit of Rs 56.5 crore, compared with a loss of Rs 54.5 crore in the same period a year earlier. Revenue from operations rose 11.9 per cent year on year to Rs 1,622.2 crore, while EBITDA increased 30.8 per cent to Rs 528 crore.
Leadership And Business Context
The development also puts attention on co-promoters Ajay Bijli and Sanjeev Bijli, who have overseen the combined company since the merger took effect in February 2023. Under the merger arrangement announced in March 2022, Ajay Bijli was tasked with managing the company for the first five years.
With a Rs 300 crore share buyback already approved and net cash of Rs 80.7 crore at the end of the quarter, PVR INOX is now dealing with a corporate controversy at the same time as it pushes ahead with its exhibition plans. That contrast is what makes this one of the most closely watched developments in India’s cinema business right now.
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