The Karnataka High Court on Tuesday stayed the state government’s order that sought to fix a uniform maximum ticket price of ?200, excluding taxes, for all cinema halls and multiplexes in the state.

Justice Ravi V Hosmani of the Karnataka High Court passed the interim order after hearing the petitions against the rules filed by film producers, the Multiplex Association of India (MAI), and a shareholder of PVR INOX, the report mentioned.

Earlier this month, the Karnataka government issued draft rules to amend the Karnataka Cinema (Control) Rules, 2014, first proposed in July 2025, seeking to cap ticket prices in all theatres, including multiplexes, at ?200, excluding taxes.

However, according to the draft rules, the multi-screen cinemas with premium facilities of 75 seats or less were exempted from the maximum ticket price limit of ?200.

Karnataka is not the first South Indian state to cap movie ticket prices. In Tamil Nadu, tickets are limited to ?150, excluding GST and local taxes. In Telangana, regular seats are capped at ?295 and recliners at ?350. In Andhra Pradesh, standard seats are capped at ?177, while premium seats cannot exceed ?295.

Multiplex owners and some film producers in Karnataka moved the High Court against the rules, calling them unreasonable and arbitrary.

“The blanket application of the cap across single screens and multiplexes, irrespective of cost variations, investment, technology, location, or format [IMAX, 4DX, etc], renders the impugned rules manifestly arbitrary,” the petitioners argued.

The petitioners pointed out that the government’s rules single out cinemas by capping ticket prices, even as other entertainment options such as OTT services, satellite television, and digital platforms face no such restrictions.

They also contended that the rules unfairly exclude multi-screen theatres with up to 75 “premium facility” seats, without clarifying what qualifies as a premium facility.

MAI’s counsel, senior advocate Udaya Holl, argued that the price cap imposes unreasonable limits on exhibitors’ business, and is disconnected from consumer protection. He added that customers should have the choice to pay more for premium cinema experiences and noted that a similar state-imposed cap had been withdrawn seven years ago after being challenged in court.

Senior advocate Dhyan Chinnappa, appearing for Hombale Films, argued that the amendment was framed under rules concerning licensing and construction of cinema halls, and did not extend to regulating ticket prices. He said local film producers rely on fair ticket pricing to recover large investments.

The state, however, maintained that the rules were meant to benefit directors, the film industry, and consumers under Article 38 of the Constitution. It said, it has the power to enforce them under the Karnataka Cinema Act.

The Karnataka Film Chamber of Commerce (KFCC), which sought to intervene, also opposed granting interim relief to the petitioners.