Recently, the Government of Karnataka passed a rule stating that all cinema ticket prices should be capped at Rs 200 (exclusive of GST) in all theatres and multiplexes across the State of Karnataka. This has been seen as a major financial hit to Bengaluru multiplexes.
The Multiplex Association of India has approached the High Court of Karnataka, stating that the Government has got no powers to limit cinema ticket prices.
The much-happening Hombale Films, which operates its business from the State, is also one of the petitioners. It is bold of the production house, which is bankrolling some of the biggest films, to question the rights of the Congress government when the fear of retribution hangs over all film personalities.
The petitioners have made this argument. "The fair price for ticket is very crucial factor for the business of film production as the process of distribution and exhibition depends on ticket price. The government’s action is absolutely without any application of mind, without any basis. The Government has not studied the expenses for film production, exhibition, and for the establishment of multiplexes/theatres."
The argument by the petitioners is not far-fetched. Multiplexes can't be run viably in an environment of arbirary price controls. Similar arguments were used by theatre owners when the Jagan Mohan Reddy government tried to break their financial health in Andhra Pradesh. When consumers are ready to pay more, why impose caps?
