PVR complains against Ronnie Screwvala to Sebi, say his tweets hurt stock

Multiplex operator PVR on Friday told Sebi its share prices fell because of film producer Ronnie Screwvala made "false and misleading statements" about a levy on exhibiting movies.

Screwvala, an entrepreneur, has said there is "nothing slanderous or malicious," in his complaint to the Competition Commission of India (CCI) about multiplex operators.

He has alleged operators, including PVR, are unfairly charging Virtual Print Fee (VPF)-- a levy on digital cinema service providers--from producers.

PVR said Screwvala tweeted on March 19 about his complaint with the CCI against multiplex chain operators saying that four large multiplex operators allegedly earn around Rs 400 crore from VPF in a year.

"The false and misleading statements from Mr Screwvala has resulted in manipulation of the stock prices of PVR," said PVR.

According to PVR, Screwvala's tweets that misled analysts and stock market investors.
 

"We believe that Mr Screwvala's repeated tweets, retweets and false statement are leading to an artificial volatility in the stock price of PVR as he continue to provide information which is untrue and misleading," it said.

Countering the allegations, PVR cited the balance sheet of PVR and Inox to say that the total VPF collected by them in 2017-18 stood at Rs 17.24 crore and Rs 24.64 crore.

"I stand by all stated on our complaint to the CCI and there is nothing slanderous or malicious," Screwvala said.

According to him, issues such as discriminatory action of multiplexes in giving preferential treatment to Hollywood movies over Indian movies or "why consumers are forced to sit through 15 minutes and more of advertising even though they paid for their ticket is still unexplained".

"... the penny drops with the multiplex owners that the ultimate risk takers are the content creators and they are only a service provider and so cannot take the lion's share of the revenue it would be fair to state that their action is in collusion and to divide and rule," he said.