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The Karnataka High Court on Tuesday stayed the state government’s decision to cap movie ticket prices at `200, a move that comes days before the release of Kannada cinema’s highly-anticipated film Kantara: Chapter 1.
The court granted an interim stay, preventing the price cap from taking effect until the court hears and decides the matter. The order followed petitions from the Multiplex Association of India, production companies, and a shareholder, who challenged the government’s attempt to impose a maximum limit on movie ticket prices in Karnataka. Good news for producers?The High Court’s interim stay comes as a relief for film producers, who had been critical of the `200 ticket cap.
Industry insiders argued that limiting ticket prices would impact revenue, particularly for high-budget and major releases, and make it harder to cover production costs. Producers say the cap would have disproportionately affected Kannada cinema, where theatrical collections remain a key part of a film’s earnings.
With the stay in place, they can continue pricing tickets based on market demand while the legal challenge proceeds.
Petitioners call cap arbitrary; state says measure is in public interestSenior counsels Mukul Rohatgi, Dhyan Chinappa, and Uday Holla, representing the petitioners, argued that the ticket cap was arbitrary, exceeded legislative authority, and violated the fundamental right to carry on business under Article 19(1)(g). Rohatgi contended that the amendment overstepped the parent provision, ignored differences between cinema formats, and unfairly treated luxury theatres the same as ordinary halls.The state, meanwhile, told the court that the cap was introduced this month via an amendment to the Karnataka Cinemas (Regulation) Rules, 2014, to ensure affordable access to cinema.Timeline:September 13: The Karnataka government issued a notification capping the maximum base price for movie tickets at `200 across all theatres, including multiplexes.September 16: Producers, multiplex associations, and stakeholders of cinema chains challenged the move in court, arguing it would hurt revenues. September 23: the Karnataka High Court granted an interim stay on the cap, preventing it from taking effect until the matter is heard and decided.