The Karnataka High Court on Wednesday (October 28) directed the State Government not to take any coercive steps against television broadcasters like JioStar India and Zee Entertainment Enterprises, who have challenged the levy of a 2% cess under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, as amended in 2026.

Justice H T Narendra Prasad passed the order while hearing petitions filed by the Indian Broadcasting and Digital Foundation, JioStar India and Zee Entertainment Enterprises, challenging the constitutional validity of the legislation and the September 10, 2026 notification bringing it into force.

Appearing for the petitioners, counsel argued that television broadcasters stand on a different footing from cinema theatre owners, as broadcasters do not directly collect subscription fees from viewers and are therefore unable to comply with the statutory obligations imposed on them.

“...In terms of the broadcasting channels, those owners of television channels—we have no interaction with the subscribers.... The submission that we are making is it is impossible for us to comply,” counsel submitted.

The Court sought to know which provision of the Act applied to the petitioners. Counsel referred to Section 2(o), which defines a “related establishment” to include standalone cinema theatres, multiplexes, over-the-top television channels and other establishments.

The Court then asked where the levy was provided for. Counsel referred to Section 9, which provides for a cess on cinema tickets, subscription fees and revenue generated by related establishments in the State.

“I don't collect subscription fees, my Lord,” counsel submitted, adding that under the Telecom Regulatory Authority of India (TRAI) regulations, broadcasters are barred from directly interacting with subscribers.

The petitioners further argued that they could not comply with Section 11 of the Act, which requires establishment owners to deposit the cess and submit half-yearly returns. Counsel submitted that collecting the required data was an obligation the broadcasters were incapable of fulfilling.

After briefly hearing the submissions, the Court directed the Government Advocate to accept notice on behalf of the State Government and the Department of Labour.

The petitioners were also directed to serve two sets of the petition papers on the Government Advocate in a connected matter, W.P. No. 30670/2026, filed by the Multiplex Association.

The Additional Advocate General had earlier undertaken that the State would not take coercive steps against the petitioners until the next date of hearing in the connected proceedings.

“In these petitions also, [the Court] directs the respondents not to take any coercive steps against the petitioners till the next date of hearing,” the Court ordered.

The matter was directed to be listed along with the connected petitions.

The broadcasters have challenged the September 10, 2026 Gazette notification and sought a declaration that the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, as amended, is unconstitutional, ultra vires and void. They have specifically challenged Sections 2(g), 2(o), 8, 9, 11, 13 and 16 of the Act, along with the Karnataka Cine and Cultural Activists Social Security and Welfare Rules, 2025, insofar as they impose or support the impugned levy on television channels.

The Act came into force on September 30, 2026, pursuant to the State Government's notification dated September 10, 2026.

The interim protection granted in these proceedings is limited to the petitioning broadcasters and does not amount to a general stay of the levy or protection for all cinema theatre owners and related establishments.

The plea was filed through Advocate Gitanjali Miriam Mathew.