PVR Inox denies Rs 200-crore kickback allegations, cites external review

MUMBAI: The buck stops here, but according to PVR Inox, it does not lead to a Rs 200-crore kickback trail.

PVR Inox has clarified reports of an internal investigation into alleged Rs 200-crore kickbacks, saying a preliminary assessment by external third-party experts found no evidence of kickbacks.

The clarification follows queries from the National Stock Exchange of India (NSE) and BSE after a September 7 report titled “PVR Inox shares fall 8% amid internal probe into alleged Rs 200-crore kickbacks”.

According to the company, the matter began in early April 2026 when its two promoters received anonymous communications alleging impropriety by certain employees.

PVR Inox said the communications did not explicitly name Pramod Arora. Instead, they referred to certain acronyms and initials. The allegations also lacked specific details, including the names of developers allegedly involved, dates or individual instances in which kickbacks were supposedly provided.

The communications were nevertheless forwarded to the company by the promoters for consideration under its internal policies.

Despite the anonymous nature of the allegations and the absence of verifiable details, PVR Inox said it commissioned external third-party experts to conduct a preliminary assessment as a measure of good corporate governance.

The company said the assessment did not indicate any evidence of kickbacks.

The clarification also addresses the departure of Pramod Arora, which had become a point of interest following the reports.

Arora resigned from the company on May 4, 2026, citing personal reasons. PVR Inox said it accepted his resignation subject to his continuing obligations towards the company and while reserving its rights and remedies.

Importantly, the company said Arora was not asked to leave.

PVR Inox subsequently informed the stock exchanges about his exit through an intimation dated May 25.

The timing of the resignation, coming after the anonymous allegations were received and while the preliminary assessment was under way, appears to have contributed to the speculation surrounding the matter. However, the company has sought to draw a clear line between the two developments, stating that the preliminary examination found no evidence of kickbacks.

PVR Inox said the episode underscores its focus on corporate governance, ethical business practices and accountability across the organisation.

The company said it has policies, processes and internal controls governing its operations and relationships with stakeholders. It added that it remains committed to conducting business in compliance with applicable laws and its governance standards.

The company also reiterated its focus on integrity, transparency and accountability.

For investors, the clarification puts the reported Rs 200-crore allegation in a different frame. PVR Inox has confirmed that an external preliminary review was undertaken following anonymous complaints, but said the exercise did not uncover evidence supporting the kickback allegations.

With the company now responding directly to the stock exchanges, the focus shifts back to its governance processes and the findings of the assessment.