Karnataka High Court Stays Rule Capping Ticket Prices At ₹200
A petition by industry stakeholders challenged the State government’s notification limiting the upper ticket price at all cinemas.
In a decision that brings relief to multiplex chains and production houses, but leaves cinema-goers disappointed, the Karnataka High Court has stayed the new ruling capping movie ticket prices at ₹200 (excluding GST) at all theatres in the State.
On Tuesday, September 23, Justice Ravi V. Hosmani of the Karnataka HC passed an interim order on petitions filed by the Multiplex Association of India (MAI) and production houses Hombale Films, Keystone Entertainment and VK Films, reported The Hindu. The petitioners have challenged the legality of the State government’s notification limiting the upper ticket price at all cinemas.
The price cap, first announced in the March State Budget and notified recently, aimed to make cinema-going more affordable and boost theatrical footfalls. The order, however, exempted premium screens with fewer than 75 seats. The petitioners against the ruling argued that the state government lacks authority under the Karnataka Cinema (Regulation) Act, 1964 to regulate ticket pricing. The Act, they contended, deals only with licensing of theatres, not commercial pricing.
A similar move in 2017 was also stayed after a challenge by the MAI. At present, ticket prices in Karnataka range between ₹100 and ₹400, with certain multiplex chains charging more than ₹1,000 for luxury formats. The government has defended the cap as a consumer-friendly measure intended to make cinema accessible, but industry bodies countered that price regulation interferes with market dynamics and could discourage investment.
On the other hand, the Karnataka Film Chamber of Commerce, the primary government regulatory body in the Kannada film industry, had reportedly contested the petitions. The KFCC believes the move was "essential", and the government had "acted on the representation given by the KFCC in this regard".
Earlier, stars such as Rakshit Shetty and Rishab Shetty had noted that major OTT platforms were not showing an interest in purchasing the streaming rights of regional movies, especially from the Kannada industry.