'State Cannot Fix Prices': Multiplex Body, Others Tell Karnataka High Court In Plea Against Rules Capping Movie Ticket Price At ₹200

The Multiplex Association and other entities challenging Karnataka Cinemas (Regulation) (Amendment) Rules 2025 capping movie ticket prices at Rs. 200, told the High Court on Tuesday [July 7] that the State government lacked legislative authority to fix ticket prices and that the cap was arbitrary and violative of constitutional rights.

The single judge bench of Justice M.G.S Kamal heard the petitioners who have challenged the amendment, notified in the Karnataka Gazette on September 12, 2025, introducing a proviso to Rule 55(6) of the Karnataka Cinemas (Regulation) Rules, 1971, imposing a maximum ticket price of Rs. 200 for all cinema halls across the state.

The petitioners argue that the said amendment is ultra vires the Karnataka Cinema Regulations Act, 1964.

For context, earlier in September 2025 a coordinate bench had granted an interim stay in the pleas moved by Multiplex Association of India, Hombale Films and other entities.

At the outset, Senior Counsel Dhyan Chinnappa for the petitioners informed the court that this was not the first attempt by the government to impose a price cap. In 2017, a similar Government Order was passed capping ticket prices at Rs. 200. That order was challenged before the High Court and was suspended. Following the stay, the government withdrew the order. The same condition has been brought about by the way of amendment to the Rules in 2025, the petitioners added.

Chinnappa said that the State government has no power under the 1964 Act, to fix ticket prices. He said that Section 19, relied upon by the State, only provides conditions for licensing, regulation of cinematograph exhibitions, regulating or prohibiting the sale of any ticket or pass for admission, to a place licensed under the Act etc. and "not price fixation" of tickets.

He pointed out that the amendment is a proviso to Rule 55, which deals with ticket booths and their setup. Rule 55 (6) specifically says that 'Charges for each ticket as well as other charges shall be as applicable in the relevant Acts and Rules', the counsel submitted. 

“…Provided that the maximum ticket price for all screenings of films in all languages in all theaters in the State, including multiplexes, has been fixed at Rs.200 (two hundred rupees only) exclusive of all taxes…. And provided that all multi-screen cinemas with premium facilities of 75 seats or less than that are exempted from the maximum ticket price limit of Rs.200...If there is a price fixed and then you establish a proviso, it's understandable but here the proviso intends to establish a price as the maximum price. This appears to be a case where the delegate was looking at some provision which said charges for tickets, they found one proviso where it mentions and added the proviso….”,he said. 

The petitioners argued that the Rs. 200 cap is arbitrary and suffers from non-application of mind. They pointed out that the 2017 order atleast had an exception for premium facilities like IMAX and 4DX, but the 2025 rules have no such exception, only providing for premium facilities in theaters with less than 75 seats.

“…The act [1964 Act] has nothing to do with price fixation… The proviso to Rules can never be introduced in a particular fashion. In all languages…Rs. 200 is the max price without reference to what facilities are there in the theatre or how large it is… a simpliciter max selling price…. If price is to be fixed, there has to be legislative guidance, it is a legislative act to determine whether the price can be fixed... and if the price is to be fixed by a delegate, the delegate has to have sufficient guidance… Fixation of actual ticket price is done by each movie theatre. There is no prohibition to fix it, it's my right under Article 19(1)g to run my business in the manner I deem appropriate”, Chinnappa said.

The petitioners also questioned the rationale behind the figure of Rs 200 which has remained constant between 2017 and 2025 after the budget speech of the Ex- CM, asking how the government arrived at the 'magical figure of 200' without any study or consultation or empirical data

“…When a person makes a movie, he has expectations of earnings. It is very dynamic because it involves the interests of artists, producer, movie maker, theatre owner etc….the benefit percolates everywhere, not just the movie theatre since they have challenged the pricing, theatre is procuring rights from distributor, distributor from the producer…this cascading effect has to be examined…. “, he said.

The Senior Counsel argued that cinema owners have the right to determine the pricing of their services, and that market forces should dictate prices. The petitioners further argued that the cap would make it economically unviable for premium cinemas to operate, potentially forcing them to shut down.

“…If the government says Rs. 200...all cinemas could be shut down... you can't say the same facility in a multiplex or forum mall will be there for a ticket priced at 100, there will Dolby Sound, IMAX, 7D etc. all of these facilities require investment…the objective is to take into account every competing interest”, he said.

Distinguishing the costs incurred for an IMAX theatre the senior counsel said:

“For an IMAX theatre, I have to pay 1 million dollars to the owners of IMAX to get license, the screen projector etc is different for IMAX....the magical figure of 200 which was stated in a budget speech even before assessment was made. They[State] haven't consulted the film industry or the multiplexes...It is impossible for us to run on these prices. To impose on the movie theatres a rate which is completely unsustainable based on nil reasons, what more arbitrariness can be there?".

The matter is next listed for further hearing on July 13.

Case Title: M/s. Hombale Films LLP & Ors. v. State of Karnataka & Ors.

Case No: WP 28138/2025 & connected matters