In a decision that could reshape your next movie night, the Bombay High Court has ruled that multiplexes can legally charge convenience fees on online bookings, handing a significant win to cinema giants PVR and BookMyShow. The Court struck down Maharashtra government orders that had banned these charges, calling them unconstitutional and beyond the scope of the State’s powers.
A division bench of Justices MS Sonak and Jitendra Jain delivered the judgment, stating that the Maharashtra Entertainment Duty (MED) Act contains no provision that allows the State to ban convenience fees. More crucially, the Court emphasized that such interference violated the right to conduct business under Article 19(1)(g) of the Constitution.
Their rationale? Simple. If a customer is willing to pay a bit extra to skip the queue and book tickets online, the State has no business stepping in to say no. Especially when cinema operators have to invest in technology and infrastructure to make that convenience possible.
The verdict came in response to petitions filed by PVR Ltd, BookMyShow (Big Tree Entertainment), and other cinema operators, challenging two government orders from 2013 and 2014. Those orders had directed multiplexes not to charge anything above the ticket price and applicable entertainment tax.
The State’s argument hinged on the idea that convenience fees were essentially overcharging and weren’t allowed under the MED Act. They leaned heavily on sections dealing with entertainment tax calculations, and even tried invoking Article 162 of the Constitution to justify the ban. But the Court wasn’t buying it.
According to the bench, Article 162 doesn’t give the executive free rein—it must operate within the limits of law. And in this case, no such law exists. The government, the judges said, cannot step in to micromanage economic arrangements between two private entities unless there’s a clear statutory basis to do so.
The Court left one door open: it didn’t rule on whether entertainment duty is payable on convenience fees—leaving that question for another day.
The verdict reinforces a core principle: economic freedom includes the right to charge for value-added services. Whether it’s a cushy recliner seat, an extra-large popcorn, or the ease of tapping a screen to book a ticket, businesses can’t be shackled without legal authority.
In the courtroom, top legal teams battled it out. PVR was represented by Naresh Thacker and Shweta Rajan; FICCI-Multiplex Association of India by Chakrapani Misra and others from Khaitan & Co; BookMyShow by Rohan Rajadhyaksha and team from AZB & Partners. The State of Maharashtra was represented by Additional Government Pleader Milind More.
For now, the ruling gives digital ticketing platforms the green light to keep charging that little extra—because, as the Court sees it, convenience does come at a price.
