Karnataka High Court bars coercive action on the 2 per cent cine cess as broadcasters challenge the Act

28 October 2026

The Karnataka High Court has directed the State not to take coercive steps against three broadcasters over the two per cent cine cess while their challenge is heard.
The Indian Broadcasting and Digital Foundation, JioStar India and Zee Entertainment Enterprises have questioned the constitutional validity of the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, as amended in 2026, and the notification that brought the levy into force.
Section 9 of the Act provides for a cess on cinema tickets, subscription fees and the revenue of related establishments.
Section 2(o) defines a related establishment to take in over-the-top television channels.
Justice H.T. Narendra Prasad issued notice to the State government and the Labour Department and extended interim protection, limited to the petitioners rather than a general stay.
The matter is to be heard with connected petitions, including one by the Multiplex Association, on 17 November.