MCGM to Bombay high court: Can't waive licence fee for Mumbai’s OOH owners

MCGM to Bombay high court: Can't waive licence fee for Mumbai’s OOH owners

The BMC stated that there is no legal provision for waiving the licence fees.

Bombay high court

MUMBAI: On 19 June, in an unexpected turn of events, the municipal corporation of greater Mumbai (MCGM) refused to waive off the licence fees even if the hoardings in Mumbai are advertising civic messages.

The bench dealt with a number of petitions filed by advertising agencies, holding licences for hoarding sites in Mumbai. The hoarding owners were seeking waiving of the licence fees. The licence holders claimed that they are not using their hoarding sites since March due to the outbreak of Covid2019 and they have been only advertising civic messages.

"There is no provision in any statute, rule, policy or license condition that contemplates that if the licence holders are unable to display the advertisement for any reason whatsoever, they will be entitled to waiver of licence fees. They have failed to make out any constitutional or legal right for such waiver of the license fees," the MCGM said in an affidavit.

"Our guidelines specifically contemplate that it is mandatory on part of the agency to display a civic message as and when directed by us for a period of 15 days in a year for which no fees will be payable," the affidavit read.

The civic body mentioned that it had sent notices to a number of agencies to put messages to spread awareness about the disease in March.

Clarifying in the affidavit, MCGM said, “Hoardings were required to be displayed for a period of 10 days only and there was no need to give any fresh notice or letter for removal of the same. The agencies are intentionally misreading our notice. The notice does not contemplate that any further instructions would be issued for removing the hoardings.”

The civic body also revealed that it had waived licence fees for the month of April of Rs 7.49 crore and that the civic body itself went through a loss of nearly Rs 70 lakh.

"The commercial arrangements between the private advertisers and the licencees are not within our scope and ambit. We are in no way responsible for any such breakdown in the commercial relationship of the licencees and the same cannot be a ground for a grant of a waiver of licence fees without any legal or the statutory basis for the same," the MCGM said while urging the bench to dismiss the plea.

The eight Mumbai OOH owners who filed the petition in the Bombay HC for waiver of licence fees are — Creation Publicity Pvt Ltd, Bright Advertising Pvt Ltd, Orion Advertisers, Anurag Sites, Em Vee Advertising Company, Pingle Outdoor, Yoag Advertisers and Pioneer Publicity Corporation Ltd.

The firms have been asked to submit replies in writing, by 26 June.