Kanth, then Deputy Commissioner of Police (Licencing), had allegedly allowed retention of 37 extra seats in the theatre in 1979 in violation of the Cinematograph Act. These extra seats had consequently blocked the exits at the balcony of the theatre where 59 movie-watchers died of asphyxia as they could not escape when fire engulfed it during the screening of a Hindi movie June 13, 1997, the court had observed in its verdict in 2007.

The AVUT had sought that the CBI report be rejected and demanded Kanth be tried for alleged complicity in the offence.