logo
Court strikes down Maharashtra's orders banning online ticket convenience fees

Court strikes down Maharashtra's orders banning online ticket convenience fees

India Today11-07-2025
The Bombay High Court on Thursday struck down two Maharashtra government orders issued in 2013 and 2014 that had barred cinema owners from charging convenience fees on online ticket bookings.The court ruled that the state lacked legislative authority under the Maharashtra Entertainment Duty Act, 1923, to issue such directives and held the orders to be unconstitutional.A division bench of Justices MS Sonak and Jitendra Jain observed that the prohibition violated Article 19(1)(g) of the Constitution, which guarantees the right to carry on any trade or business.advertisement
"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. It added that customers are free to choose whether to book tickets online or purchase them at the theatre.The court was hearing petitions filed by PVR Ltd, the FICCI-Multiplex Association of India, and BookMyShow (Big Tree Entertainment Pvt Ltd), which had challenged the orders banning recovery of any additional charges for online booking services.Senior advocate Naresh Thacker, appearing for the petitioners, argued that the orders infringed on constitutional freedoms and lacked any specific statutory backing.BookMyShow's counsel, advocate Rohan Rajadhyaksha, submitted that the directions constituted an unreasonable interference in private business agreements.The state, represented by Additional Government Pleader Milind More, defended the orders citing Article 162 of the Constitution and provisions of the Entertainment Duty Act.The court, however, rejected these arguments, noting that the cited sections did not empower the state to ban the collection of convenience fees. It concluded that the orders amounted to unauthorised restrictions on legitimate business practices and were thus liable to be quashed.- EndsTune InMust Watch
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

States to ease off-budget borrowings amid fiscal discipline push
States to ease off-budget borrowings amid fiscal discipline push

Mint

timean hour ago

  • Mint

States to ease off-budget borrowings amid fiscal discipline push

New Delhi: After a year of sharp increases, Indian states are expected to keep their off-budget borrowings largely flat in FY26, signaling a shift toward tighter fiscal discipline even amid persisting pressures for welfare spending, according to two people familiar with the matter. The restraint comes after years of heavy reliance on off-budget borrowings, which had ballooned during the pandemic with both the Centre and states scrambling to finance emergency spendings. Off-budget borrowings by states rose to ₹ 29,335 crore in FY25 from ₹ 21,251 crore the year before, finance ministry data shows. In FY21, at the height of covid-related spending, such borrowings had touched ₹ 67,181 crore. 'States have been told to enforce fiscal discipline. Even access to the Centre's 50-year, interest-free loans, which are popular among states, comes with conditions requiring greater financial prudence,' said the first person mentioned above, on the condition of anonymity. Many states, the person said, are increasingly turning to the Centre's Special Assistance to States for Capital Investment (SASCI) scheme, which provides long-term, interest-free loans for infrastructure projects, rather than relying on off-budget borrowing mechanisms. Off-budget borrowings by states are likely to slow down in FY26, the person added. On its part, the Centre had itself discontinued off-budget borrowings in FY23. Since FY22, it has tightened rules for states by counting debt raised through state-owned entities, where repayment is backed by state budgets, taxes, or other revenues, toward their overall borrowing limits under Article 293(3) of the Constitution. 'States are realizing that excessive off-budget borrowing undermines fiscal credibility. By reining it in, they not only improve transparency and discipline but also preserve space for future borrowing at lower costs,' said the second person mentioned above. 'Curbing off-budget borrowings also reassures investors and credit agencies that states are serious about managing debt sustainably,' the person added. There was no response to queries emailed to a finance ministry spokesperson. A recent report by CareEdge Ratings noted that the budgets of 13 major states, representing 83% of India's GDP, project an aggregate fiscal deficit of 3.2% of GDP in FY26, broadly in line with the previous fiscal year. The report also highlighted sharp differences in states' financial resilience: richer states such as Haryana, Telangana, Karnataka, Tamil Nadu, and Maharashtra finance more than three-fourths of their budgets through their own revenues, while states including Madhya Pradesh, West Bengal, and Uttar Pradesh rely heavily on central transfers. In FY25, Maharashtra topped the list of states relying on off-budget borrowings at ₹ 13,990 crore, followed by Karnataka ( ₹ 5,438 crore), Telangana ( ₹ 2,697 crore), and Kerala ( ₹ 983 crore), according to finance ministry data. In FY24, Maharashtra had raised ₹ 7,700 crore through off-budget borrowings, followed by Kerala ( ₹ 4,688 crore), Telangana ( ₹ 2,546 crore), Punjab ( ₹ 1,675 crore), Tamil Nadu ( ₹ 1,560 crore), and Assam ( ₹ 1,102 crore). States often turn to off-budget borrowings to fund welfare schemes and infrastructure without breaching deficit targets or borrowing caps. While this offers short-term flexibility, high borrowings raise concerns over transparency and fiscal discipline. Keeping such borrowings in check will ease debt pressures and help ensure that India's broader consolidation roadmap stays credible. States have been increasing their open market borrowings over the past five years. According to finance ministry data, Maharashtra and Tamil Nadu lead the pack, each breaching the ₹ 1.2 lakh crore mark in FY25, underlining the scale of state-level investment and spending priorities. Karnataka and Uttar Pradesh have also recorded substantial increases. Smaller states, including those in the northeast, have maintained modest borrowing profiles.

Private investment happening, but Trump effect and increased discipline is creating a ‘stop-start' effect: ex-FICCI president
Private investment happening, but Trump effect and increased discipline is creating a ‘stop-start' effect: ex-FICCI president

The Hindu

time3 hours ago

  • The Hindu

Private investment happening, but Trump effect and increased discipline is creating a ‘stop-start' effect: ex-FICCI president

Private investment is taking place in the country, but is concentrated in a few sectors and has been exhibiting a 'stop-start' effect since the COVID-19 pandemic, according to Subhrakant Panda, Managing Director of Indian Metals & Ferro Alloys Limited and former President of the Federation of Indian Chambers of Commerce & Industry (FICCI). While some of the reasons behind this — global uncertainty and adequate current capacity — are more well known, Mr. Panda also points out that recent positive reforms such as the Insolvency and Bankruptcy Code (IBC) have encouraged companies to be more disciplined about their investments. 'It's not as if there is no investment across the board,' Mr. Panda told The Hindu in an interview. 'There is a reasonable amount of investment that is happening. Money will flow where there is opportunity.' 'I think there are sectors that are more in focus and are therefore getting investments,' he added. 'It's not surprising that a lot of investment is going into renewables, a lot of investment is going into logistics-related infrastructure. No doubt, a bulk of the heavy lifting is being done by the government, but private sector investment is coming in there as well.' Reforms bringing discipline One of the less-talked-about factors that has slowed investment activity as compared to previous years is increased discipline by investors, Mr. Panda pointed out. 'I think the IBC is one of the most major reforms that the government has enacted, a very good reform,' he explained. 'But the flip side of the reform is that, today, if a capex decision goes wrong, there are consequences. So there is that added layer of 'let me be sure before I go ahead'.' IBC has brought about additional discipline in companies by instilling the notion that, if they take on debt and invest that into expansion, there are consequences if that does not play out the way they anticipated. 'I don't want to go down the path of saying what was happening earlier, but I think a better way of putting it is to say that today there are consequences for a wrong call and therefore it is important to be absolutely sure before you invest,' Mr. Panda added. 'Does that add a slight hesitation to an investment decision? Perhaps!' He did clarify that it was not as if the private sector players operated as if there were no consequences earlier, but that these consequences are now 'more stark'. Notably, Mr. Panda also pointed out that the IBC might actually be resulting in an undercounting of private investment. 'The other interesting aspect of IBC is that a lot of money has gone into reviving dead assets or underutilised assets,' he explained. 'I am not sure if an investment to acquire an asset under IBC is also being counted as private capex or not, but the fact is that is also money that is going into enhancing productive capacity.' Trump effect, again Mr. Panda explained that the years before the pandemic were not very much better in terms of global uncertainty. Then, too, it was the Donald Trump effect. 'In the pre-COVID years, if we were to extrapolate based on our experience in our industry, 2018 and 2019 were two very tough years because of all the trade disputes between the U.S. and China, particularly, which were creating turmoil throughout global markets,' he said. He added that, while this uncertainty was definitely felt by the metals and alloys sector, it was fair to assume that this was the case for most of the Indian economy, barring a few exceptions. 'There was uncertainty due to all the tariff disputes in Trump 1.0,' Mr. Panda asserted. Now, geopolitical issues including tariff uncertainties brought on by Mr. Trump are playing spoilsport again, he added. 'If you look at private investment from 2021-22 onwards, the data shows that every alternate year, capex has grown,' Mr. Panda explained. 'FY25 saw the highest growth of about 55-60%, in investment intentions.' This 'stop-start' has a lot to do with the continuing uncertainties around the world, he said. When the economy emerged from COVID, companies took about 18-24 months to gauge the scenario before committing to major investments. 'What has also happened in the last few years is that you have had a panoply of geopolitical issues, whether it is the conflicts, whether it is several other issues and now, of course, trade disputes in the form of reciprocal tariffs again coming up,' he said. 'So, I think all of that has had an input.' Adequate capacity Mr. Panda pointed out that the capacity utilisation of the private sector — a measure of how intensively it was using existing capacity — stood at about 75% at an aggregate level. This, he explained, was not high enough to encourage fresh investments. 'When we were coming out of COVID, capacity utilisation inched up from the high 60s to the high 70s,' he explained. But initially it was very disproportional, where certain sectors such as auto, paper, etc., were 90% plus and certain sectors, which were below the average. Now it's a lot more secular growth, if I can put it that way.' 'But the general principle is that unless you cross 80% capacity utilisation, you generally don't look at replacements,' he said. 'So, that is where it is.'

‘If you're Indian, buy made-in-India products only': PM Modi to citizens ahead of festive season
‘If you're Indian, buy made-in-India products only': PM Modi to citizens ahead of festive season

Indian Express

time6 hours ago

  • Indian Express

‘If you're Indian, buy made-in-India products only': PM Modi to citizens ahead of festive season

With India's trade negotiations with the US going through a tumultuous period amid global turmoil, Prime Minister Narendra Modi on Sunday called for buying products made in India in the upcoming festive season. He was speaking at the inauguration of two national highway projects in the national capital: the Delhi section of the Dwarka Expressway and the Urban Extension Road-II. 'I request all citizens to trust products made in India. If you're Indian, buy made-in-India products only…I want to say one thing to shopkeepers and businessmen also: there was a time when you used to sell products made elsewhere, maybe because you made more profit there. But now you also have to support my initiative of 'vocal for local',' he said. Modi also accused the Aam Aadmi Party and the Congress of degrading Delhi's condition as well as of drafting draconian laws. 'For the longest time, we were not even close to power in Delhi. Previous governments have destroyed Delhi during their tenures. They had pushed Delhi into a ditch. It is very difficult to pull Delhi out of problems that have accumulated over the years. But I am confident that the BJP team you have chosen in Delhi will solve these,' he said. 'Earlier governments used to consider Swachhta Mitras their slaves. These people who dance keeping the Constitution on their head, they used to trample on it and betray the beliefs of Babasaheb,' he said. The prime minister also said he had removed a provision of the Delhi Municipal Corporation Act under which a Swachhta Mitra can be imprisoned for a month if they don't come to work for one day without informing the authorities.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store