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PVR, Inox fall over 10% after Maharashtra govt allows outside food in multiplexes

Maharashtra government on Friday clarified that there is no restriction on taking food articles from outside multiplexes and consuming them in the multiplexes.

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PVR, Inox fall over 10% after Maharashtra govt allows outside food in multiplexes

In what could bring relief to moviegoers who often crib about over-priced pop corns and soft drinks at multiplexes, Maharashtra government on Friday clarified that there is no restriction on taking food articles from outside multiplexes and consuming them in the multiplexes. Following the announcement, the stock of PVR Cinemas fell 13.47 per cent or 188 points to 1209 level whereas Inox Leisure fell 10.34 per cent or 25 points to 226 level.

Minister of state for Food and civil supplies Ravindra Chavan made the announcement in the ongoing monsoon session of the state legislature in Nagpur today. Chavan was speaking while replying to a query raised by Leader of Opposition in the Legislative Council Dhananjay Munde.

"The government will also soon resolve the issue of higher pricing of eatables and beverages in multiplexes. Maharashtra minister Ravindra Chavan made this announcement in Nagpur. The Maharashtra State legislative assembly is in session in Nagpur currently.

"The state govt will be coming up with a policy in next six weeks on taking action against such erring multiplexes and malls," Chavan said. "There is a central Govt policy on Uniform pricing... Items sold in the Multiplexes will be as per MRP from August 1st" Chavan added.

Chavan said that there was no such rule under which multiplexes can charge huge amounts of money and said that there cannot be two different prices for the same product, it said.

Recently, the Bombay High Court too had lashed out at the state government and multiplexes after a PIL said that multiplexes were not allowing people to bring in food procured from outside multiplexes and were charging an exorbitant amount from people who bought food products from within the multiplexes.

The decision comes just two weeks after an incident in Pune where members of the Raj Thackeray-led Maharashtra Navnirman Sena (MNS) were caught on camera assaulting an employee of a multiplex over the high prices of food items. After that Multiplex owners had met Thackeray at his residence and promised that rates of water bottles, and food items like pop corns will be kept at reasonable rates.

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