In a major win for PVR and BookMyShow, the Bombay high court on July 10 quashed the Maharashtra government’s decision to prohibit multiplexes and online ticketing agencies from charging convenience fees to customers when they book film tickets via online platforms.
The government has no authority under the Maharashtra Entertainment Duty Act to issue such orders, a bench of Justices M.S. Sonak and Jitendra Jain observed. These directives, issued by the government, were in violation of the fundamental right to carry on business under Article 19(1)(g) of the Constitution, the judges observed. The high court further said that if a customer finds it convenient to book tickets online and pay the fees, the state cannot restrain the online platforms and cinemas.
The high court said that the government cannot micromanage economic activity in this manner. “If business owners are not permitted to determine the various facets of their business (in accordance with law), economic activity would come to a grinding halt,” the bench said.
The bench struck down part of Government Orders (GOs) issued by Maharashtra, which barred multiplexes from charging such fees. It may be mentioned here that the Maharashtra GOs directed multiplexes and online ticket booking platforms to not charge customers any additional fees over and above the ticket price and applicable entertainment duty (now replaced by GST).
PVR Ltd. and Big Tree Entertainment Pvt. Ltd. (BookMyShow) had filed a petition in the Bombay high court, challenging two Government Orders issued between April 2013 and March 2014.