By the Court—Supplementary counter affidavit and supplementary rejoinder affidavit be taken on record.

This petition under Article 226 of the Constitution of India has been filed by the petitioners feeling aggrieved by the inaction of the respondents in not making payment of the subsidy on the total cost of production of film as per film policy of the State Government.

2. In order to give impetus to the film producers, the State of U.P. constituted a society in the name of Film Bandhu in the year 2001 which was duly registered under the Societies Registration Act, 1860 and it has Its own bye-laws. The objects of the Film Bandhu are to develop infrastructure facility for films, Video Film, Documentary Film and Regional Film etc and other films related developments and encouragement as given therein.

3. Film Bandhu is a kind of agency which gives loan/grant to the Film Producer in the State and is entrusted with the supervision of the Film Policy of the State Government. The State Government chalked out a Film Policy in the year 1999, which was revised by the Government in the year 2001. The broad features of the amended policy of the year 2001 are as follows :

(i) The Government will provide infra-structure facilities like Processing Lab., Studio, Equipments, training to Artists and Technical Staff, either itself or by arranging for the same.

(ii) Providing exemption or reduction in Entertainment Tax to deserving Films produced in the State.

(iii) Building or assisting the construction of Multiplexes in the State,

(iv) The renovation of old Cinema houses and establishing new Cinema Halls in the State.

(v) Providing various facilities and incentives to the Cinema Hall owners for Captive Power Plant Generator,

(vi) Development of shooting locations in the State,

(vii) Housing facilities for Film Units with regard to shooting purposes

(viii) Allowing various government facilities like air-strips etc. to the Film Units shooting films within the State.

4. Clause 23.3 of the Film Policy which is quoted as under provided for subsidy;

23.3. Subsidy :

“A subsidy of 25% of the cost of production, subject to a maximum limit of Rs. 10 lac, will be provided to films made in the State in any one of the above mentioned languages. This subsidy will be paid to film processing labs for the expenditure actually incurred in the making of the film. In the first three years, this subsidy can be paid to laboratories situated outside Uttar Pradesh. However, after three years regional films will be able to avail this scheme only if the processing of their films is done by labs situated in U.P. This provision will hopefully stimulate the growth of such lab facilities within the State, Besides, for promotion of such Hindi films also, over 75 percent shooting of which has been completed in the state, a proportionate grant shall be given or the amount of grant will be adjusted with rates of interest of institutional finance for films.”

5. A producer of a film was entitled to get subsidy of the given amount, in case the conditionsmentioned therein are full filled.

Later on the amount of Rs. 10 lacs was increased to Rs. 20 lacs in the Film Policy 2002, There is a dispute regarding the enforcement of the Film Policy 2002 on the ground dial it has not been approved by the State Government, though it has been circulated under the signatures of the Director of Informations, Government of U.P. Even assuming that the policy of 2002 is not yet available for implementation or is not applicable in the case of the petitioners, still the question remains as to whether the petitioners are entitled to get the subsidy in terms of clause 23.3 of the Film Policy 2001.

6. It is not in dispute that the petitioners had shot hindi film Pani Re Pani Tera Rang Kaisa in the city of Lucknow wholly. Since the Film had been made at Lucknow in its entirety and it is Hindi Film, the petitioners are entitled to subsidy of 25% of the cost of production subject to maximum limit of Rs. 10 laos.