The Karnataka High Court has come to the aid of the Multiplex Association of India and PVR INOX Limited by setting aside the measures used to enforce 2% cess on cinema tickets under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024.

The single judge bench of Justice H.T. Narendra Prasad ruled that the steps taken to operationalise and collect the cess could not stand because the 2024 Act had not been validly commenced through a notification under Section 1(2) of the 2024 Act.

The writ petition had challenged the 2024 Act, the Karnataka Cine and Cultural Activists Social Security and Welfare Rules, 2025, the 2026 amendment to the Act, and various notifications, office orders, circulars and enforcement notices issued to implement the cess against cinema halls and multiplexes.

The central argument of the petitioners was that the 2024 Act had never been brought into force, as no valid commencement notification under Section 1(2) had been issued. They also contended, without prejudice, that the Act, the amendment, the Rules and the implementation measures were constitutionally invalid.

The Court had earlier directed the State authorities to take notice and listed the matter for further hearing.

When the matter was taken up today, the petitioners pointed out that there was no valid notification under Section 1(2) published in the Official Gazette appointing a date for the Act's commencement. They submitted that the Rules, appointments, office orders and notices could not substitute for the commencement notification required by the statute.

The State then filed a memo stating that it was withdrawing the Circular/Office Order dated August 29, 2026, which had directed mandatory collection and remittance of the 2% cess on cinema tickets with effect from September 1, 2026.

The Court took note of the State's withdrawal of the August 29 Circular/Office Order.

It then quashed the other impugned measures issued to enforce the cess, holding that they could not be sustained in the absence of a valid commencement notification under Section 1(2).

The writ petition was accordingly allowed, granting relief to the petitioners.

Case Title: Multiplex Association of India & Ors v. State of Karnataka & Ors.

Case No: WP 28571/2026