Karnataka High Court stays Rs.200 movie ticket price cap, Relief for multiplexes

The court's decision temporarily suspends the enforcement of the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which had mandated a uniform ticket price ceiling of Rs.200 for all theatres and multiplexes across the state, regardless of the film's language or the venue's facilities.

Legal Challenge and Key Arguments

The stay order was passed by Justice Ravi V Hosamani after hearing petitions filed by the Multiplex Association of India, along with several theatre owners and film production houses, including Hombale Films, the producer of the upcoming big-ticket film Kantara: Chapter 1.

The petitioners' central argument was that the government's price cap was arbitrary and lacked empirical basis. Senior Advocate Mukul Rohatgi, representing the multiplex body, questioned the rationale behind a uniform ceiling, stating, "What is the basis for fixing Rs 200, if customers want to pay more for enhanced facilities?". He famously argued that the directive was as unreasonable as ordering "all airlines must operate in economy class".

Other legal counsel for the petitioners contended that ticket pricing is a matter of private contract between exhibitors and moviegoers, and the government's regulation, unless explicitly backed by legislation, infringes upon the fundamental right to conduct business under Article 19(1)(g) of the Constitution.

Government's Defence and Court's Stand

Defending the state's move, Additional Advocate General Ismail Zabiulla argued that the amendment was introduced in the public interest to ensure broader access to cinema halls. The government cited its constitutional authority to regulate theatres and referred to a Supreme Court ruling that upheld a state's right to regulate ticket prices.

However, the court found merit in the petitioners' arguments for an interim stay. This is not the first time such a cap has been challenged; a similar government order from 2017 was also suspended by the High Court and later withdrawn.

Impact and Next Steps

The interim stay means that ticket prices will not be capped at Rs.200 for the time being, allowing multiplexes and theatres to price tickets according to their market dynamics. This is particularly crucial with the upcoming festive season and the highly anticipated release of Kantara: Chapter 1 on October 2.

The High Court's stay will remain in effect until further orders, and the matter is expected to be heard in detail in the subsequent stages of the legal process. The decision has been welcomed by the film exhibition industry, which views it as a necessary step to protect their investments and the varied cinema-viewing experiences they offer.