The Karnataka high court on Tuesday reserved its order on an interim plea filed by multiplex owners and film production houses seeking a stay on the state government’s new rule capping cinema ticket prices at Rs 200 (exclusive of GST) across theatres and multiplexes in the state.

Justice Ravi V. Hosmani reserved the verdict after hearing arguments from petitioners, including the Multiplex Association of India, and film production houses Hombale Films, Keystone Entertainment, and VK Films.

The petitioners challenged the amendment to the Karnataka Cinema (Regulation) Rules, which came into effect on September 12. The rule caps ticket prices at Rs 200 except in multi-screen cinemas with premium facilities and seating for 75 or fewer.

The petitioners argued that the state government lacked the authority under the Karnataka Cinema (Regulation) Act, 1964 — which governs theatre licensing — to regulate ticket pricing. They contended that the cap was imposed without due consideration of production, distribution, and exhibition costs.

Counsel for the production houses argued that ticket pricing is a critical factor for the film industry’s sustainability and that the government’s decision lacked any proper study or basis.

The court was also informed that a similar price cap was attempted in 2017 via a Government Order but was withdrawn after legal challenges from industry stakeholders.

On the other hand, the Karnataka Film Chamber of Commerce opposed the petitions, asserting that the price cap was necessary and based on representations made by the industry.

The state government defended the rule, stating that the cap was imposed in the larger public interest.