BENGALURU: Refusing to stay the single judge’s order staying the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, issued by the state government fixing a Rs 200 cap on cinema tickets, the Karnataka High Court on Tuesday directed the Multiplex Association of India (MAI) and all multiplexes operating under its umbrella to maintain comprehensive and auditable records for every ticket sold.
The court also directed the multiplexes to exhibit the summary of the interim order on-screen before each movie for a duration of at least 30 seconds in English and the regional language.
The records must include date and time of sale, mode of booking (online or at box office), mode of payment (credit/debit Card, UPI, Net Banking, or cash), amount collected, and GST component. “Digitally traceable receipts must be issued for all cash transactions, and daily cash registers must be countersigned by the manager-in-charge of the multiplex,” said a vacation division bench of Justice Suraj Govindaraj and Justice Rajesh Rai K, clarifying that these directions are issued to ensure transparency and accountability.
The division bench passed this interim order considering the potential harm to the consumers and also the MAI pending adjudication of the matter, after hearing the appeal filed by Karnataka Film Chamber of Commerce, Kannada Film Producers’ Association and several others against the interim order dated September 23, 2025, passed by a single judge staying the rules fixing the cap on movie tickets.
Hombale Films, MAI and others had filed the petition before the single judge against the impugned Rules, dated September 12.
However, the Vacation Bench clarified that in the event that the petitioners fail in the final adjudication of this writ appeal or petition, all (extra) amounts collected (excluding applicable GST) through electronic means during the pendency of this litigation must be refunded to the individual consumers who booked the tickets, via the same payment method used for booking.
The court further said that MAI should submit a refund processing plan to the Licensing Authority for approval within 45 days from today (September 30), detailing the mechanism for refunds to be made to consumers. The same on approval by the licensing authority would have to be placed before the court for final approval.
Cash transactions
About cash-based ticket sales, the court said that the multiplexes must issue numbered, time-stamped receipts to consumers. MAI should propose a mechanism to facilitate voluntary refund claims for consumers who paid in cash, subject to court approval upon final adjudication. The cash transactions would be reviewed after the final hearing. The MAI should submit monthly consolidated reports of ticket sales and amounts collected, both electronic and cash, along with a summary of GST remitted to the Licensing Authority by the 15th of each succeeding month, the court ordered.
To ensure compliance, the court said that an independent chartered accountant, jointly nominated by the MAI and the state, should be appointed to audit the monthly compliance reports submitted by the MAI. In the event that any multiplex fails to comply with the directions set out in this order, particularly with respect to record maintenance or timely reporting, such multiplexes should lose the benefit of the interim arrangement granted by this court.
The court said, in the event that MAI fails in a writ petition or appeal, any unrefunded or unclaimed amounts should be deposited into a designated State Welfare Fund and should be used for public welfare purposes. Such funds should be subject to the audit conducted by the Comptroller and Auditor General to ensure transparency and accountability, the court added.
Further hearing was adjourned to November 25.