Supreme Court Halts Karnataka HC’s Multiplex Audit Rule, Warns of Empty Theatres
The High Court intervenes in the dispute over the requirement of detailed ticket sales in Karnataka's 2025 cinema regulation, citing the heavy burden on operations and a threat to theatre viability.
The Supreme Court of India has stayed the Karnataka High Court order that made it mandatory for multiplexes in the state to maintain detailed, auditable records of every ticket sold. The top court observed that the rule was unduly onerous and could have disastrous consequences on cinema operations.
The case is linked to the Karnataka Cinemas (Regulation) Amendment Rules, 2025, which also imposed a cap of ₹200 on the price of film tickets across theatres in the state. These rules had been stayed by a single-judge bench initially; later, a division bench ordered theatres to keep exhaustive data of ticketing and sales till the disputes were resolved.
The multiplex owners argued that such a directive was counterproductive because most transactions take place online, where the sales are automatically accounted for and audited through digital platforms. The Supreme Court appreciated this concern and noted that to enforce such meticulous manual record-keeping would “add to unnecessary pressure on the industry.”
The bench also warned that the increase in operational costs — everything from ticket rates to food and beverage prices — would soon drive away audiences, cautioning that cinema halls would “soon be empty” if the economic balance in the industry is not protected.
The stay, in effect, has given interim relief to the Multiplex Association of India which had challenged the Karnataka HC order. The Supreme Court has issued notices to the state government and other respondents and sought responses within four weeks.
The High Court will continue hearing the matter on November 25, while the film industry is intently waiting to see how the final judgment may reshape the cinema’s regulatory and pricing norms in Karnataka.
