Take policy decision on allowing cinema halls in airports, Madras High Court tells Ministry of Civil Aviation

The Madras High Court on Tuesday directed the Airports Authority of India (AAI) to submit to the Ministry of Civil Aviation the issue of whether cinema halls should be allowed within areas secured by the Central Industrial Security Force (CISF) or even outside such areas within airport complexes in the country.

Justice M. Dhandapani waited for the Ministry to take a policy decision on the issue and ordered that the five-screen PVR INOX multiplex set up at Aerohub (a commercial area attached to the multi-storey car park complex in the unsecured area of ​​Chennai airport) could continue operating till then.

If the ministry allows cinema halls in unsecured areas of airport complexes, AAI has been directed to enter into a lease agreement with PVR INOX as the agreement between Meenambakkam Realty Private Limited, the original lessor of PVR INOX, and AAI has been terminated. The judge said that if the Ministry decided not to allow cinema halls even in unsecured areas of airport complexes, PVR INOX would be at liberty to file suit against the original lessor and directed the High Court Registry to mark a copy of its decision to the Ministry for information.

The orders were taken after hearing PVR INOX senior counsel PS Raman and Satish Parasaran and Additional Solicitor General AL. Sundaresan takes the help of AAI’s standing lawyer Ramaswamy Meyyappan. The Ministry was not a party to the case.

history of the case

AAI had invited tenders for the development of Aerohub at Chennai airport in 2017. Olympia Techpark (Chennai) Private Limited turned out to be a successful bidder and launched a special purpose vehicle called Meenambakkam Realty; This vehicle also signed a development agreement with AAI in 2018 to develop, build, operate and maintain the facility for 15 years.

All necessary permits were then obtained and Aerohub was built with a five-screen multiplex. PVR INOX signed a sublicense agreement with Meenambakkam Realty in November 2022 to operate the multiplex and started showing movies from February 1, 2023. The sublicensing period between them was 13.5 years.

However, on July 21, 2023, AAI wrote a letter to Meenambakkam Realty stating that it had been decided to close the multiplex as the operation of cinema halls within an airport complex is not a permissible activity under the provisions of the AAI Act, 1994. The letter was signed by Joint General Manager (Commercial) M. Selvanayagam on behalf of the Airport Director.

Nearly two years later, Meenambakkam Realty conveyed to PVR INOX on May 15, 2025 that the 2018 development agreement with AAI had been terminated prematurely and AAI had decided to maintain the entire 2,47,202 sq ft Aerohub built on 4.5 acres of land on its own. PVR INOX moved the Madras High Court and obtained an interim status quo order. The case was then heard at length and the court announced its decision on Tuesday.