The Supreme Court today questioned the functioning of motion pictures associations of different states for restricting production houses from dealing with distribution companies which are not their members.
A bench headed by Justice Gyan Sudha Mishra termed the behaviour of associations as "mafiagiri" and questioned them for putting restriction on their members from dealing with companies which are not their members.
"Organisations which indulges in such mafiagiri should not be allowed," the bench said, adding that their plea challenging Competition Commission's order holding their practices as anti-competitive should not be heard.
"I am shocked to see that organisations can put such restrictions," Justice Mishra said.
The bench, however, agreed to hear the associations plea and listed it for hearing on September 5.
"You have to establish under what provisions you can put such restrictions on your members which affects their right to trade and business," the bench said.
The Commission had held these representative bodies of distributors and exhibitors of the cinema-films had involved in various anti-competitive activities.
It was alleged that these associations were compelling the producers and distributors of cinema-films to compulsorily register their films with them, forcing them to abide by their rules and restraining them from dealing with non-members as also putting restrictions such as limiting of number of cinema theatres for exhibition of films.
