The Competition Commission of India (CCI) has ordered a detailed investigation into multiplex giant PVR Inox following a complaint by the Film and Television Producers’ Guild of India. The Guild alleged that the country’s largest cinema operator continues to collect the virtual digital fee (VDF), a charge that was meant to be phased out years ago.
The VDF was introduced in 2007 to fund the transition from analogue projectors to digital cinema systems. While Hollywood studios stopped paying the fee nearly a decade after completing the switch, Indian producers argue that they are still being forced to bear the expense, which disproportionately hurts small and mid-sized producers.
CCI’s 90-day probe timeline
In its order dated 30 September, the CCI noted a prima facie violation of competition rules and asked its Director General (DG) to conduct a full probe within 90 days. The DG will also examine whether PVR Inox executives were directly responsible for the alleged anti-competitive practices.
The CCI clarified that its observations at this stage should not be construed as a final decision, with the investigation set to proceed independently.
Financial performance in Q1FY26
Even as it faces regulatory scrutiny, PVR Inox narrowed its consolidated loss to Rs 54 crore in the April–June quarter of FY26, compared with a steep Rs 1,790 crore loss a year earlier.
Revenue from operations rose 23% year-on-year to Rs 1,469 crore, buoyed by a stronger slate of films such as Sitaare Zameen Par and Mission: Impossible – The Final Reckoning, which pushed footfalls up 12%. Average ticket prices increased 8% to Rs 254, while food and beverage spends hit an all-time high of Rs 148 per person, according to Reuters. To attract more viewers, the company offered weekday ticket discounts and re-released popular older titles. It also plans to add 200 new screens over the next two years, according to company executives.