PVR Inox shares fall 6% after kickback report; company says preliminary probe found no evidence

Shares of PVR Inox Ltd fell 5.68 per cent on Monday to close at Rs 1,157.40 after a news report raised concerns over an internal examination into alleged kickbacks involving a former senior executive. The stock also declined after the record date for the company's recently announced share buyback.

In a stock exchange filing, PVR Inox issued a clarification regarding the report titled, "PVR Inox shares fall 8% amid internal probe into alleged Rs 200-crore kickbacks".

PVR Inox said, "As regards the News Item, the Company wishes to clarify and inform that in early April 2026, the two promoters of the Company received anonymous communications containing allegations of impropriety by certain employees. These anonymous communications did not explicitly name Mr. Pramod Arora but used some 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, "These communications were promptly forwarded by the promoters to the Company for further consideration as per Company policy. Despite the communications being anonymous and bereft of verifiable details, as a measure of good corporate governance, the Company engaged external third-party experts to conduct a preliminary assessment."

PVR Inox further stated, "Meanwhile, Mr. Arora resigned on May 4, 2026, due to 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. 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 preliminary examination also did not indicate any evidence of kickbacks."

The company said it will continue to make appropriate disclosures in compliance with applicable laws, as and when required.