The Madras High Court has asked the Union Ministry of Civil Aviation to formulate a clear policy on whether cinema multiplexes can function inside airport premises. Until such a policy is framed, the court has said that the Airports Authority of India (AAI) cannot compel PVR INOX to shut down its multiplex located in the Multi-Level Car Parking (MLCP) complex near Chennai Airport.

Justice M Dhandapani issued the direction while hearing a petition filed by PVR INOX, which challenged AAI’s order instructing the cinema operator to cease operations at the MLCP facility. The court noted that the matter required a policy-level decision from the Centre and extended protection to the multiplex in the meantime.

The dispute traces back to the AAI’s tender inviting proposals for the development of the MLCP and an adjoining commercial complex at the airport. The tender provided a broad list of permissible commercial activities, and crucially, cinema theatres were not included in the list of prohibited categories. Meenambakkam Realty Pvt. Ltd. won the bid and subsequently entered into a sub-licence agreement with PVR INOX, granting rights to set up and operate a five-screen multiplex within the designated space.

However, on July 21, 2023, AAI issued a notice directing Meenambakkam Realty to immediately close the cinema hall, claiming that multiplex operations were not permissible under the Airports Authority of India Act. Litigation followed in the Delhi High Court, after which Meenambakkam Realty terminated its contract with AAI.

PVR later approached the Madras High Court, which initially ordered status quo and directed the Authority to decide on PVR’s representation. When AAI rejected the representation, PVR filed the present petition, leading to Thursday’s order. The High Court’s directive now places the onus on the Union Government to clarify its stance on multiplexes at airports.