The Supreme Court has stayed the Karnataka High Court’s order directing cinema multiplexes in the State to maintain auditable records of every ticket sold during the pendency of petitions challenging the State Government’s decision to cap movie ticket prices at ₹200.

 

A Bench of Justices Vikram Nath and Sandeep Mehta passed the interim order while issuing notice on petitions filed by the Multiplex Association of India and other parties against the High Court’s September 30 direction.

 

The Bench clarified that the Single Judge of the High Court may continue hearing the main challenge to the price cap. Earlier, the Single Bench had stayed the Government’s notification, while the Division Bench—though not lifting that stay—had imposed several interim conditions, including the maintenance of ticket sale records, verification by Chartered Accountants, and submission of monthly reports. The stay on the price cap was made conditional on compliance with these directions, prompting the multiplexes to move the Supreme Court.

 

Senior Advocate Mukul Rohatgi, appearing for the petitioners, argued that the High Court’s directions were impractical and unworkable, given that most tickets are booked online through platforms like BookMyShow. “The judges think tickets are sold at counters. But everything is online now. I don’t have IDs or details of buyers. Who carries an ID to purchase a ticket?” Rohatgi submitted.

 

The State’s counsel defended the order, claiming it was a temporary measure to protect consumer interests. “If your lordship pays ₹1000 today and tomorrow the State succeeds, you will get ₹800 back. That’s all the Division Bench intended,” he said.

 

Senior Advocate Shyam Divan, appearing for another petitioner, contended that the State lacks statutory authority to regulate ticket pricing.

 

During the hearing, Justice Nath orally observed that ticket prices should be made reasonable: “You charge ₹700 for a ticket and ₹100 for water. Prices should be fixed so people can come and enjoy. Otherwise, halls will stay empty.”

 

Rohatgi replied, “Let them be empty. The cap applies only to multiplexes; people can go to normal theatres.” Justice Nath retorted, “There are no normal theatres left. We are with the Division Bench that it should be ₹200.” Rohatgi maintained, “It’s a matter of choice.”

 

The Supreme Court was hearing a challenge to the Karnataka High Court’s September 30, 2025 order, which, while protecting financial rights of all parties, directed multiplexes under the Multiplex Association of India to keep detailed, auditable records of each ticket sold, including the mode of payment and GST component. The order also required multiplexes to:

• Issue digital receipts for all cash sales,

• Submit monthly consolidated reports of ticket sales and GST remittances,

• Enable voluntary refund claims for cash transactions, and

• Display a summary of the order online and on-screen before every movie.

 

The High Court further warned that non-compliance would automatically lead to the reimposition of the ₹200 price cap, and persistent violations could attract penalties or suspension of the multiplex’s license.

 

Aggrieved by these requirements, the Multiplex Association of India approached the Supreme Court, which has now stayed these compliance directions pending further hearing.