The Supreme Court has issued a notice to the TRAI (Telecom Regulatory Authority of India) on a batch of appeals filed by Indian Broadcasting Foundation (IBF) and various broadcasters against the Bombay High Court order which had upheld TRAI’s decision to cap prices of subscription of television channels.

Refusing to grant an interim stay on the High Court order, the 3-judge bench of Chief Justice NV Ramana, Justice Surya Kant and Justice Aniruddha Bose observed that they will hear the case on September 7 after seeing TRAI’s reply.

Appearing for the IBF, senior lawyer Mukul Rohatgi argued that the High Court order violated fundamental rights of broadcasters, claiming that the right to fix charges for television channels can’t be regulated by authorities.

Opposing the regulatory power conferred upon TRAI by the High Court by upholding its new tariff order (NTO 2.0), IBF argued that when there is no public interest involved in regulation of prices of cinema tickets, how can the doctrine be used to cap prices of TV channels. Producers Guild also supported IBF’s arguments in its appeal against the High Court order.

However, Centre and TRAI argued that the High Court order was passed in interest of millions of consumers, claiming that the balance of convenience was tilted in favour of millions of consumers instead of 40 odd-broadcasters.

On June 30, a division bench of the Bombay High Court had upheld legal validity of TRAI Act with respect to the regulator’s powers and functions over television broadcasters.

As per NTO 2.0, TRAI reduced maximum price cap on individual channels of any bouquet from Rs. 19 to Rs. 12 per month and levied conditions for formation of channel bouquets, which even put a price cap on channel bouquets.

Broadcasters have claimed that TRAI’s action was arbitrary and wasn’t backed by any consumer insight, claiming that the order will reduce television channels provided in a bouquet.