BENGALURU: The Karnataka High Court on Tuesday stayed the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, issued by the state government, fixing a Rs 200 cap on cinema tickets.
Justice Ravi V Hosmani granted the interim order of stay, which was reserved after hearing a batch of petitions filed by Hombale Films, Multiplex Association of India, and others questioning the impugned Rules dated September 12, 2025, issued by the state government.
The petitioners contended that the impugned rules are arbitrary and contrary to the Karnataka Cinemas (Regulation) Act, 1964. There can't be a direction to fix the price of the ticket since they have spent money on movie halls. There is no provision under the Act. The cost of land and the cost of building in Bengaluru are more than 10 times that of tier-2 and tier-3 cities. Earlier, in 2017, a similar government order was issued, and the same was withdrawn consciously, they claimed.
They contended that the impugned rules arbitrarily restrict their right to trade and business guaranteed under Article 19(1)(g), without serving any legitimate public interest under Article 19(6). Cinema is a discretionary activity, not an essential commodity under the Essential Commodities Act, 1955. Consumers have choices, including OTT platforms, and market forces already balance pricing.
The petitioners stated that the impugned rules will destroy their business model and will have devastating consequences for them. The cap threatens direct loss of tax revenue (approximately annual GST from ticket sales is Rs 225 crore; Rs 112.5 crore accrued in SGST alone), reductions in property tax via depressed cinema rentals, and multiplier effects on local economies.