Madras High Court Directs Indian Ministry on Airport Cinema Policy; PVR INOX

The Madras High Court has directed the Indian Ministry of Civil Aviation to formulate a definitive policy regarding the operation of cinema multiplexes within airport complexes. This directive comes after PVR INOX Ltd challenged an order from the Airport Authority of India (AAI) seeking the closure of its five-screen cinema at Chennai Airport's Aerohub. Pending the Ministry's policy decision, the High Court has granted PVR INOX permission to continue its operations in the multi-level car parking (MLCP) complex.

The dispute arose from an AAI order issued on July 7, 2023, which demanded the immediate cessation of INOX's cinema hall operations, citing that such facilities were not permissible under the Airports Authority of India Act, 1994, and raised "security issues." PVR INOX countered this, arguing that AAI's action was "arbitrary and unconstitutional," violating Articles 14 and 19 (1) (g) of the Indian Constitution. The multiplex asserted a "legitimate expectation" and "promissory estoppel," given that its operations in the unsecured commercial zone (Aerohub) had been previously permitted and were not an "isolated act."

Justice M Dhandapani, presiding over the plea, noted that the cinema multiplex at Chennai Airport is located outside the security zone, making the AAI's security concerns less relevant in this specific context. The court highlighted that such facilities are beneficial for passengers and visitors, offering leisure options without leaving the airport premises, and are common at other major international airports globally, even within secured areas. The High Court has mandated the Ministry of Civil Aviation to consider these aspects and make a policy decision within four weeks. Should the Ministry permit airport multiplexes, AAI is directed to negotiate a sub-license agreement with PVR INOX; otherwise, the petitioners retain the liberty to pursue other remedies.