The Karnataka High Court on Wednesday directed the state government not to take coercive action against television broadcasters, including JioStar India and Zee Entertainment Enterprises, over a 2% welfare cess imposed under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024.

Justice HT Narendra Prasad passed the interim order while hearing petitions filed by the Indian Broadcasting and Digital Foundation (IBDF), JioStar India and Zee Entertainment. The petitioners have challenged the constitutional validity of the 2026 amendment to the law and the rules governing the levy. The government introduced the cess through a notification issued on September 10.

The court issued notices to the state government and sought its response. It scheduled the next hearing for November 17.

The broadcasters have sought the cancellation of the September 10 notification issued by the labour department. They have also challenged the 2026 amendments and the 2025 rules imposing the 2% cess on broadcasters and related entities. The petitions seek to quash all actions arising from the notification.

The petitioners' counsel argued that television broadcasters differ fundamentally from cinema theatres and do not collect subscription fees directly from viewers. They said broadcasters operate through distribution networks and have no direct interaction with subscribers under Telecom Regulatory Authority of India (TRAI) regulations. This, they argued, makes compliance with the statutory requirements impractical.

The latest petitions follow similar legal challenges by multiplex operators and theatre owners, including the Multiplex Association of India (MAI) and PVR INOX. On September 30, the state government told the High Court it would not take coercive action against cinema operators for failing to collect the cess until the court decides the legal challenges.

The amendments impose a cess on cinema and related revenues to fund welfare measures for cine and cultural workers. The legislation came into force earlier this month.