The country’s top court has brought back to life a penalty order that had been gathering dust for a decade. On Friday, the Supreme Court reinstated the Competition Commission of India’s 2015 decision against the Kerala Film Exhibitors Federation (KFEF) and two of its office bearers—P.V. Basheer Ahmed and M.C. Bobby—for anti-competitive behavior that blocked the screening of Tamil and Malayalam films in Crown Theatre.
The penalty, originally imposed on September 8, 2015, had been watered down by the Competition Appellate Tribunal (COMPAT), which faulted the CCI for not issuing a separate show-cause notice to the office bearers. Today, that shield crumbled.
The case had its roots in repeated complaints that the Federation was misusing its clout to dictate what films could and couldn’t be shown. In the first round, the CCI slapped a penalty worth 7% of the average salary of the accused. But even after this financial sting, the practices reportedly continued. The watchdog then went a step further—directing the Federation and its leaders to stay away from each other for two years.
While COMPAT partly allowed the Federation’s challenge, the CCI carried the fight forward. A bench of Justices Manoj Misra and K.V. Viswanathan ruled in the regulator’s favor, saying that a detailed report from the Director General coupled with the earlier notice was enough to fix liability. The Court was blunt: statutory responsibility under Section 48 of the Competition Act automatically makes those at the helm accountable.
Justice Viswanathan, writing for the bench, emphasized that the penalties were not only proportionate but necessary, given that earlier fines had failed to stop the behavior. “Monetary penalties did not deter them,” the judgment noted, stressing that behavioral restrictions were the only way to safeguard consumer choice and the rule of law.
With this ruling, the Court fully restored the CCI’s 2015 order and also demanded a compliance report—whether the Federation actually followed the directives remains an open question.
The saga dates back to 2012 when the Kerala Cine Exhibitors Association first raised the alarm under the Competition Act, accusing the Federation of cartel-like tactics. After years of appeals, reversals, and counter-appeals, the Supreme Court has now drawn a firm line: filmgoers’ freedom to choose what to watch cannot be strangled by industry gatekeepers.