PVR INOX ₹200 crore scam: CEO Pramod Arora asked to resign after internal probe

An internal probe conducted by PVR INOX, India’s largest multiplex chain, revealed a ₹200 crore scam, the ET reported. The scam, which came to light in April 2026, allegedly involved kickbacks received from developers involved in the construction of cinema properties. 

The investigation was centred around the claims that the company’s Chief Executive Officer of Growth and Investment, Pramod Arora, allegedly received money from cinema property developers after helping them secure a deal with the multiplex chain. The total profit accumulated over the several years could balloon to as much as ₹200 crore. 

Arora was closely involved in PVR INOX’s expansion into Tier II, Tier III, and Tier IV cities, which aims to add nearly 1,000 screens over the next five years through an asset-light, franchise-led model. The expansion relies on a Franchise-Owned, Company-Operated (FOCO) model to keep capital expenditure low. Under the model, real estate partners fund proper construction while PVR manages daily operations and earns a management fee. This means an official can help a developer secure a deal. By 2025, the multiplex chain had opened its first batch of FOCO-model screens.

Following the probe, Arora was asked to leave. He resigned from the company effective May 24, 2026, citing personal reasons. A declaration signed by Arora prevents him from joining rival cinema chains and from approaching PVR INOX’s existing vendors. The document guarantees legal action if the restrictions are breached. 

After the PVR-INOX merger in February 2023, Ajay Bijli and Sanjeev Bijli have been co-promoters since the merger. Under the agreement terms, Ajay Bijli is responsible for managing the company for the first five years from March 2022. 

PVR INOX is under scrutiny as the allegations have raised questions about how long the payments continued and whether the organisation were aware of them. The ongoing investigation will closely examine whether other employees were aware of it and how large the scam was. The matter has reportedly also been discussed at board meetings. 

The corporate governance issues come at a time when the company’s financials have strengthened. It reported a consolidated net profit of ₹56.5 crore for Q1 FY27 compared to a loss of ₹54.5 crore in the corresponding period in the previous fiscal year. The promoters own about 27.5 per cent of the company, while the rest is owned by foreign investors, domestic institutions and public shareholders.