• Source:JND
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The Bombay High Court on Thursday revoked the Maharashtra government’s orders banning multiplexes and cinemas from charging convenience fees on online bookings, stating the state had no legal authority under the Maharashtra Entertainment Duty (MED) Act to enforce such a restriction, Bar and Bench reported.

A Division Bench of Justices MS Sonak and Jitendra Jain held that the Maharashtra government's prohibition on charging convenience fees violated Article 19(1)(g) of the Constitution, which guarantees the right to practise any profession or carry on any occupation, trade, or business. The court noted that the government orders issued between April 2013 and March 2014 lacked legislative backing.

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“The impugned GOs, to the extent that they prohibit collection of convenience fees on tickets booked online, violate Article 19(1)(g) of the Constitution,” the Bench noted, adding that the orders must be “quashed and set aside”.

The judges clarified that online ticket booking is a matter of consumer choice and that levying a convenience fee for this service constitutes a legitimate business practice.

“If the customer feels it is convenient the respondents cannot restrain the petitioners from collecting the convenience fees, since for providing this facility petitioners have to invest in the technology,” the court said.

The Bench cautioned against excessive government interference in commercial decisions, stating, “If business owners are not permitted to determine the various facets of their business economic activity would come to a grinding halt.”

Petitions Filed By PVR 

The petitions were filed by PVR Ltd, Big Tree Entertainment (which operates BookMyShow), and other cinema operators, who argued that convenience fees were commercial service charges meant to cover costs such as payment gateways, internet infrastructure, and customer support, charges not governed by the Maharashtra Entertainment Duty (MED) Act.

The Maharashtra government countered that such fees were not permissible under the MED Act and cited Article 162 of the Constitution to justify its executive orders, claiming that the convenience fee amounted to an excess charge not accounted for in the entertainment tax structure.

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Rejecting this stance, the court held that executive powers under Article 162 cannot operate in a legislative vacuum. It said that the MED Act contains no provision authorising the government to ban the collection of such fees.