Recently, the Karnataka High Court refused to interfere with a Single-Judge order that stayed the operation of the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which sought to cap cinema ticket prices at Rs 200.
The stay was initially granted by a single judge following a plea by the Multiplex Association of India and others, raising concerns over the impact of the price cap. A Vacation Bench comprising Justice Suraj Govindaraj and Justice Rajesh Rai K expanded the interim arrangement while emphasizing accountability measures for multiplexes.
The Court directed the Multiplex Association and its members to maintain detailed records of ticket sales, both cash and electronic (excluding GST), and submit periodic statements to the licensing authority by the 15th of each month. The bench noted that if the petitioners fail in their challenge, excess electronically collected amounts must be refunded to cinegoers, while cash transactions may be appropriated for public good or addressed later by the court.
The Division Bench also mandated that multiplexes display the court order prominently in cinema halls and before screenings to ensure transparency. The appeal had argued that amendments to statutes enjoy a presumption of validity and should not ordinarily be stayed without examining their constitutionality.
The Court observed that the single judge’s stay was justified due to the potential irreversible financial loss to multiplexes if the cap remained in force and was later struck down. The bench also noted concerns that a blanket cap could distort the film exhibition market and interfere with contractual arrangements between cinema owners and patrons.
The matter is now posted for further hearing on November 25.
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