PVR's DT Cinemas Rs 500cr buyout hits CCI hurdle: Sources

PVR's acquisition of DT Cinemas, inked in June this year, may run into opposition from the Competition Commission of India (CCI), which has raised objection to the deal.

Sources say that the competition watchdog has reservations over the Rs 500 crore deal, on grounds that the merged entity will have a monopoly of cinemas in the south Delhi area. Fourteen of DT's 29 screens are located in south Delhi.

The deal will go through only after CCI gives its nod. It is not clear whether the watchdog has suggested any steps to the respective companies -- such as divesting some cinemas.

Both PVR and DLF, owner of DT, declined to comment to a CNBC-TV18 query over this development.Watch video for more.