PVR INOX row: Company clarifies Pramod Arora exit, ₹200 crore kickback allegations amid stock slump

In a fresh twist over the alleged kickbacks row, multiplex chain PVR INOX on Monday clarified that it had not asked its CEO (Growth and Investment), Pramod Arora to leave over the alleged ₹200 crore kickbacks scam, and that no evidence of this had been found so far.

In a letter to stock exchanges regarding reports alleging that its shares had fallen due to the internal probe into Pramod, PVR INOX said that Arora had resigned on May 4 this year for "personal reasons".

The clarification was issued after the NSE and BSE sought an explanation from PVR INOX over a media report titled 'PVR Inox shares fall 8% amid internal probe into alleged Rs 200-crore kickbacks'.

Arora's reported close ties to the promoters had also added to investor unease about how long the alleged scam may have been running in the background.

"Upon Mr. Arora’s exit, the stock exchanges were duly informed by the Company pursuant to an intimation dated May 25, 2026. The Company wishes to clarify that Mr. Arora was not asked to leave," the letter read.

This comes after PVR's stock saw one of its steepest single-session falls in recent months, hitting an intraday low of ₹1,125.70 on the NSE on Monday—down about 9 per cent from Friday’s close.

On the kickbacks allegations

The multiplex chain also pointed out that its preliminary probe into the alleged ₹200 crore scam "did not indicate any evidence of kickbacks" so far.

Though PVR INOX noted in the letter that two of its promoters had received anonymous communications containing allegations of impropriety by certain employees, these did not explicitly name Pramod Arora, but used acronyms/initials instead.

"The communications did not provide any specific actionable details, such as instances, dates or names of developers, who are alleged to have provided kick-backs," it added in the letter.

Yet, the company claimed that it had gone ahead with an internal probe into the alleged kickbacks, conducted by third-party experts "as a measure of good corporate governance".

It was amid this probe that Arora resigned, which the company had claimed was not linked to the probe, and was for "personal reasons".

"The Company accepted Mr. Arora’s resignation, subject to his acceptance of continuing obligations towards the Company and the Company reserving all its rights and remedies," PVR explained in the letter, pointing out that the stock exchanges were duly notified at the time of his exit.

"The Company remains committed to conducting its business responsibly, in accordance with applicable laws and its established governance standards," it added in the letter, reiterating its commitment to strong corporate governance, ethical business practices and accountability across the organisation.