The Karnataka High Court has restrained the State government from taking coercive action against television broadcasters JioStar India and Zee Entertainment Enterprises over the non-payment of a disputed 2% cess under the Karnataka Cine and Cultural Activists (Welfare) Act.
Justice H T Narendra Prasad passed the interim order on October 28, 2026, while hearing petitions filed by the Indian Broadcasting and Digital Foundation (IBDF), JioStar India and Zee Entertainment Enterprises.
Background
The broadcasters have challenged the constitutional validity of the Act, as amended in 2026, and the September 10, 2026 notification implementing the levy. They have also challenged several provisions of the legislation and the 2025 Rules concerning the cess.
The petitioners argued that television broadcasters do not directly collect subscription fees from viewers and cannot fulfil the statutory obligations imposed on them.
Counsel submitted, “I don't collect subscription fees, my Lord,” referring to the restrictions governing broadcasters' interaction with subscribers under Telecom Regulatory Authority of India regulations
The Court questioned the petitioners about the provisions applicable to them and the legal basis for the levy. After hearing the submissions, it directed the State government and the Labour Department to accept notice.
The Court ordered,
“In these petitions also, [the Court] directs the respondents not to take any coercive steps against the petitioners till the next date of hearing.”
The matter was directed to be listed alongside connected petitions.
