'Forcing Airlines To Offer Only Economy': Karnataka HC Stays Order Capping Cinema Ticket Prices At Rs 200

Bengaluru: The Karnataka High Court on Tuesday, September 23 temporarily suspended the enforcement of new regulations that would have restricted cinema ticket prices to a maximum of Rs 200. Justice Ravi V Hosmani granted this interim relief based on petitions filed by the Multiplex Association of India and several other industry stakeholders. The multiplex industry mounted a fierce legal challenge, arguing the price cap would devastate businesses that have invested heavily in premium cinema experiences. The petitioners pointed to a similar government attempt in 2017 that was successfully challenged and later withdrawn. Theater operators argued they had spent substantial amounts creating premium facilities with the expectation of market-driven pricing. The forced cap, they said, would be like mandating all airlines offer only economy class seating.

"What's the rationale for fixing tickets at Rs 200? If customers want to pay more for luxury, why stop them with such a broad restriction? History is repeating itself," LiveLaw quoted senior advocate Mukul Rohatgi, representing the Multiplex Association, as saying. The petitioners raised serious questions about how the government implemented the restrictions. Senior advocate Dhyan Chinnappa, representing film production house Hombale Films, argued the state had no constitutional power to fix ticket prices under existing cinema regulation laws. "The government is trying to introduce price controls through a rule amendment when the original Act never contemplated ticket price fixation," Chinnappa said, calling the move "completely illegal." The lawyers pointed out that the pricing provision was added to Rule 55, which originally dealt with ticket booth construction standards, not pricing mechanisms. "A rule cannot expand beyond what the main law allows," they argued.

Film producers also expressed particular concern about how the price cap could affect the Kannada film industry. "We make movies assuming fair pricing. Our earnings depend on it," said Chinnappa, arguing that arbitrary price controls without studying industry economics would hurt local film production. Theater owners said the regulations would eliminate their ability to offer differentiated services and premium experiences that justify higher ticket prices. Senior advocate DR Ravishankar argued that ticket pricing should remain a private matter between cinema operators and moviegoers, not subject to government interference that could violate constitutional business rights.

Karnataka Govt Defends Move

The Karnataka government defended its action as serving the broader public good. Additional Advocate General Ismail Zabiulla said the measure was announced in the state budget and aimed at making cinema more accessible to ordinary citizens. "This is done in the interest of the general public," Zabiulla argued, citing constitutional provisions that give states authority over theaters and entertainment venues. The government had published a draft notification in July and received objections from industry players before finalizing the rules.

The court's interim stay means the Rs 200 price cap cannot be enforced while the legal challenge proceeds. Justice Hosmani will need to determine whether the state government overstepped its authority and if the regulations violate constitutional protections for business operations. The case could set important precedents for government price controls in other sectors, particularly those requiring licenses to operate. The matter will come up for further hearing as the court examines the full legal and constitutional implications of the government's attempt to regulate private sector pricing in the cinema industry.

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