K'taka HC declines to vacate stay on movie tickets price cap

Bengaluru, Sep 30 (PTI) The Karnataka High Court on Tuesday refused to interfere with a single-judge order that had stayed the operation of the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025 that sought to cap cinema ticket prices at Rs 200.

On September 23, a single judge had granted an interim stay on the rules following a plea by the Multiplex Association of India and others.

Hearing an appeal filed by the Karnataka State Film Chamber of Commerce, a vacation bench comprising Justice Suraj Govindaraj and Justice Rajesh Rai K on Tuesday expanded the interim arrangement while directing accountability measures for multiplexes.

The bench instructed the Multiplex Association of India and its members to maintain detailed accounts of ticket sales -- both cash and electronic, excluding GST, and submit periodical statements to the licensing authority by the 15th of every month.

"In case the petitioners fail in their challenge, the electronically collected excess amount can be refunded to cinegoers. Cash transactions will be dealt with by the court at a later stage," the order stated.

The court also observed that if the petitioners lose, amounts collected in cash could be appropriated for "public good." Further, the court accepted the State's request to ensure transparency by directing multiplexes to display the order prominently in cinema halls and on screen before movie screenings.

The appeal argued that amendments to a statute enjoy a presumption of validity and cannot ordinarily be stayed at the interim stage without examining their constitutionality.

However, the bench noted that the single judge was influenced by the possibility of irreversible financial loss to the petitioners if the cap remained in force and was later struck down.

In its September 23 order, the single judge had observed that the parent Act did not specifically empower the government to fix ticket prices, raising doubts about the validity of the rules.

The order also pointed out that a blanket cap could distort the film exhibition market, forcing producers to increase the number of shows to recover costs. It further remarked that the amendment risked treating "unequals as equal and equals unequally" and interfered with contractual arrangements between cinema owners and patrons.

The division bench posted the matter for further hearing on November 25. PTI COR KSU SA