The Supreme Court on Monday (3 November) stayed the Karnataka High Court’s order directing multiplexes to maintain a comprehensive and auditable record for every movie ticket sold.
The Supreme Court also observed that the cinema industry is witnessing a decline and cautioned that if multiplexes fail to make ticket prices more reasonable, their halls could soon be empty.
The high court’s division bench had issued the direction on September 30 while hearing a plea against its single judge’s interim stay on the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which sought to cap cinema ticket prices at Rs 200.
A plea challenging the division bench order came up for hearing before a bench of Justices Vikram Nath and Sandeep Mehta.
“This should be fixed,” the bench remarked, observing that multiplexes were charging Rs 100 for a bottle of water.
“As it is, the cinema is declining. Make it more reasonable for people to come and enjoy. Otherwise, the halls are empty,” the bench said, adding, “We are with the division bench that it should be Rs 200.”
The apex court agreed to hear the plea filed by the Multiplex Association of India and others, and issued notices to the Karnataka State Film Chamber of Commerce and other respondents seeking their replies within four weeks.
“In the meantime, the effect and operation of the impugned order shall remain stayed,” the bench directed, clarifying that the single judge may proceed with the matter.
Earlier, on September 23, the single judge had stayed the implementation of the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, pending further orders. The division bench later modified that order, requiring multiplexes to maintain detailed, auditable ticket sale records including date, time, mode of payment, amount collected, and GST component.
It also directed that multiplexes issue digitally traceable receipts for all cash transactions, with daily registers countersigned by the manager-in-charge. The matter before the high court has been listed for further hearing on November 25.
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