SC puts brake on Karnataka HC’s multiplex audit rule: warns, 'Cinema halls may soon be empty'

The Supreme Court on Monday (November 3) stayed the Karnataka High Court’s order mandating multiplexes to maintain detailed, auditable records of every ticket sold.Reportedly, the interim order, passed by a bench of Justices Vikram Nath and Sandeep Mehta, came as a major relief to multiplex operators across Karnataka, who had argued that the directive was operationally impractical and burdensome.As reported by Live Law, the court agreed to hear the plea filed by the Multiplex Association of India and issued notices to the Karnataka State Film Chamber of Commerce and other respondents, seeking replies within four weeks.

The battle over Karnataka’s Rs 200 ticket cap

The legal dispute starts from the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025. It introduced a maximum ticket price of Rs 200 across cinema halls in the state. A single judge of the Karnataka High Court had initially stayed the cap.

This granted temporary reprieve to theatre owners.However, a Division Bench later directed multiplexes to maintain exhaustive ticket-sale records — including transaction dates, payment modes, and GST details — until the main issue was resolved. Multiplex owners contended that such a system would be difficult to implement, especially given the dominance of online bookings and automated platforms that already maintain digital transaction trails.

SC flags rising ticket and snack prices

While granting the stay, the Supreme Court also noted concerns from the audience’s perspective. Reportedly, the bench observed that excessive pricing inside theatres could discourage viewership, remarking, “At Rs 100 for a water bottle and Ra 700 for a ticket, the halls may soon be empty.”The Karnataka High Court is expected to take up the next hearing on November 25.