Multiplex Chains, Producers Challenge Karnataka’s ₹200 Ticket Price Cap in HC

The Karnataka High Court on Tuesday reserved its verdict on pleas challenging the State’s decision to cap cinema ticket prices at ₹200, following petitions by multiplex owners and film producers.

 

Justice Ravi V. Hosmani, who heard the petitions, indicated that orders on interim relief will be pronounced on September 23. The case concerns the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which introduced a ceiling of ₹200 for all cinema halls, including multiplexes.

 

The petitions were filed by the Multiplex Association of India (MAI), film producers, and a PVR INOX shareholder. They contended that applying a uniform cap across single screens and multiplexes was arbitrary, given the higher operational costs, investments and advanced technologies in multiplexes.

 

“The blanket application of the cap across all theatres, without regard to investment, location, technology or format such as IMAX and 4DX, makes the rules manifestly arbitrary,” the plea said. Petitioners also pointed out that OTT platforms, satellite television and digital streaming remain unregulated, even though only cinema theatres have been targeted.

 

The petitioners further challenged an exemption that spares multi-screen cinemas with fewer than 75 “premium” seats, arguing that the rules give no clarity on what constitutes “premium facilities.” Such selective application, they argued, violates the fundamental right to conduct business under Article 19(1)(g) of the Constitution.

 

During the hearing, Senior Advocate Udaya Holla, appearing for MAI, argued that customers should be free to choose higher-priced luxury experiences, and exhibitors should have the liberty to set such prices. He said the cap bore no relation to consumer protection and amounted to an unreasonable restriction on business.

 

He recalled that a similar cap was imposed seven years ago but later withdrawn after a legal challenge. A fresh cap, he warned, would severely affect multiplex revenues.

 

Senior Advocate Dhyan Chinnappa, representing Hombale Films, submitted that the parent rules dealt only with licensing and construction of theatres, not pricing. The State had no legal competence to fix ticket prices, he said, stressing that producers rely on fair pricing to recover investments, and arbitrary ceilings could disrupt business. He also questioned whether any industry-specific study was conducted before introducing the amendment.

 

Keystone Entertainments’ counsel advanced allied arguments. The State, however, defended its action as being in the public interest. Its counsel said the Karnataka Cinema Act and the Constitution empower the government to regulate ticket pricing, and the rule was introduced for the benefit of the industry and consumers in line with Article 38.

 

The Karnataka Film Chamber of Commerce (KFCC) sought to intervene, opposing interim relief to the petitioners. The Court, however, asked the KFCC to file a formal impleading application.

 

The matter will be taken up again on September 23.

 

 

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