New Delhi: The Supreme Court (SC) on Monday stayed the Karnataka High Court’s order directing cinema multiplexes across the State to maintain auditable accounts of every ticket sold during the pendency of a case challenging the State Government’s decision to cap ticket prices at Rs. 200.

A Bench comprising Justices Vikram Nath and Sandeep Mehta passed the interim stay while issuing notice on petitions filed by the Multiplex Association of India and others challenging the High Court’s Sept. 30 order.

The Court clarified that the Single Bench of the High Court may continue hearing the case relating to validity of Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which introduced the Rs. 200 ticket price ceiling.

Earlier, the Single Bench had stayed the enforcement of the price cap, while a Division Bench, though not vacating the stay, imposed additional compliance conditions on multiplexes — including the maintenance of detailed financial and customer records.

Aggrieved by these directions, the Multiplex Association of India moved the Supreme Court.

Senior Advocate Mukul Rohatgi, appearing for the petitioners, argued that the High Court’s order was “unworkable” and impractical in the digital age.

Counsel for the State of Karnataka defended the High Court’s interim directions as a temporary safeguard to ensure refunds to movie-goers if the Government ultimately succeeded in defending the price cap.

Senior Advocate Shyam Divan, also representing the petitioners, maintained that the State lacked statutory authority to fix ticket prices, calling the directions a violation of commercial freedom.