Cinepolis India executives file FIR against company

Two top executives of the Indian arm of Mexicos multiplex chain, Cinepolis, have filed a police complaint against the company and its four directors alleging forgery, cheating, falsification of accounts and criminal conspiracy. According to a First Infomation Report filed with the Gurgaon Police by Milan Saini, managing director, Cinepolis India, and Deepak Marda, joint managing director, they have been denied equity shares promised to them in 2007 when Cinepolis entered India.

They have alleged the accused committed cheating, knowingly using forged documents for purpose of cheating, falsification of accounts and criminal conspiracy to prevent both of them from becoming shareholders in the company. Email and calls to the directors remained unanswered. Litigations on the shareholding issue of Cinepolis India are going on in the Punjab and Haryana High Court and the Company Law Board.

Claiming the company had successfully grown in India since entering the country, the two Indian executives said in the FIR the firms "equity value is expected to become more than Rs 1,000 crore in the next 2-3 years from a mere Rs 34 crore of investment made till December 31, 2012 for 25.03 lakh shares of a face value of Rs 10 each.

They claimed that in the last five years they have been able to negotiate for more than 65 theatres out of which 11 are operational as on date and an additional six would be operational in the next nine months.