Maharashtra single-screen theatres to remain shut even if allowed to reopen

Cinema halls in most Indian states have been reopened but they remain shut in Maharashtra, the state that generates the maximum revenue for films. There is also no indication when they will reopen.

However, even if the Maharashtra government finally gives the nod for theatres to reopen, chances are single-screen theatres will not.

The Cinema Owners & Exhibitors Association (COEA), the body that controls single-screen theatres in the state, has said its members will not reopen for business until some of their demands are met.

The biggest demand is for waiver of property tax for the period when theatres were forced to remain closed. “The rules state that during natural calamities, property tax can be exempted," said COEA president Nitin Datar. "But they [the government] are saying COVID-19 doesn’t come under natural calamity.”

He also pointed out that theatre owners have been forced to pay a 'minimum' electricity charge all these months though they are using almost zero electricity with their establishments shuttered. “It has been close to two years now that theatres have been closed, but they are levying a minimum electricity charge," he said. "We want them to waive it. We haven’t used any electricity, but still they are levying charges.”

The theatre owners are upset that despite the pandemic situation and loss of business the government has initiated action against those establishments which have failed to pay these charges. “They have cut the electricity connections and sent notices for property tax to some theatres,” he said.

Another grievance of the single-screen cinema-hall owners relates to the payment of licence fees for hoardings and neon signs. “Our association has told them that as theatres are closed and no new films are coming up, we haven’t put up any new hoardings. The neon signs are also off. Still they are asking for the licence fee,” Datar said.

The theatre owners have a similar complaint about renewal of their licences. “We are required to take 10 or 15 NOCs [no-objection certificates] for licence renewal and we always pay the licence fee in advance," he pointed out. "But they are collecting licence fee even for the period when theatres have been shut.”

On the other hand, theatres have been waiting for their GST (goods and services tax) refunds for exhibiting tax-free films for two years. In classical bureaucratic style, when a film is granted tax-free status, tickets become cheaper for cine-goers as they don't have to pay the duty, but cinema halls are expected to deposit the amount anyway with the treasury and then wait for a refund.

“As per the rules, we can’t collect the tax from the public, but we have to deposit the amount in the treasury and they return it to us later," Datar pointed out. "For example, on a ticket costing Rs100, we can’t collect the GST of Rs10 from the audience, but we need to pay the amount to the government, which will return the money to us later. We haven’t received that money for two years now."

The theatre owners also want the rule in Maharashtra, which prevents theatres from being replaced by any other business, to be withdrawn. “If they are unable to meet our demands, let them allow us to start any other business in place of our theatres," Datar demanded. "Even farmers have the right to grow any crop on their land. They are also allowed to convert it into non-agricultural land and sell it. Why a different rule only for theatres?”

He pointed out that several other states in India, incluiding some poorer than Maharashtra, had met these demands. “They have been met in states like Gujarat, Karnataka, Andhra Pradesh, Chhattisgarh, Rajasthan, Punjab, Delhi, Uttar Pradesh and Bihar," he said.

“All our demands are legal," he continued. "We aren’t demanding anything that is against the law. We want them to give us at least a firm assurance. Only then will we reopen theatres.”

Datar said the association is looking for a response, positive or negative, from the government so that they can then decide their next steps. “We want them to say yes or no," he said. "If they say no, we have the option of going to court. If we go to the courts now, they will say the government hasn’t refused your demands.”

Datar also painted a dire picture of the position of single-screen cinema halls in Maharashtra. He said of the 1,200 such theatres functioning in the state when the COVID-19 pandemic struck, only 450 now are in a position to resume business.