Bollywood actor and director Aamir Khan and his production house, Aamir Khan Productions Private Limited, have knocked the doors of the Bombay High Court challenging the show cause notice issued to them by the Competition Commission.
The commission had issued the notices to the actor for allegedly forming a cartel of film producers last year and deciding that they would not screen their movies in multiplexes.
The notice was issued under the Competition Act, enacted to prevent practices having adverse effect on competition. The Act was brought into effect to ensure that no one forms cartels that adversely affect consumers.
Last April, some film producers came together and announced that they would not screen their movies in multiplexes since they were not getting a fair deal. The multiplexes wanted 50 per cent of the revenue earned by the movies they screened.
The producers opposed the demand stating that they were the ones who put in the money and the creativity in making the movie and hence were not willing to part with 50 per cent of the revenues.
After the announcement, the commission conducted a preliminary inquiry. A report was prepared, which concluded that Khan had violated the Competition Act and issued a show cause notice to the actor in December 2009.
Khan opposed the notice stating that he was merely an actor, director and not a producer. The commission then issued a show cause notice to the production house - Aamir Khan Productions Private Limited.
Khan’s counsel Arshad Hidayatullah argued that the commission did not have the jurisdiction to issue show cause notice to the actor. “He does not hold copyrights to his movies. He is merely an actor,” argued Hidayatullah.
Additional solicitor general Darius Khambata argued
that Khan himself had written a letter to the commission. HC will hear the matter on February 26.