Civic bodies have power to levy fees for grant/renewal of sky-signs, hoardings and billboards: HC

Mumbai: Civic bodies have the power to regulate and levy fees for grant/renewal of licence fees for sky-signs, hoardings and billboards, the Bombay High Court has said while dismissing petitions that challenged the decision of municipal corporations to levy fees.

A bench of Justices G S Kulkarni and Advait Sethna in the judgment passed on Tuesday, a copy of which was made available on Thursday, said as sky-signs, hoardings and billboards determine the skyline of modern cities, their regulation and control in the best manner have assumed significance, and added that there cannot be any "myopic approach" in this regard.

The HC passed the order on a bunch of petitions challenging the levy of licence fee by municipal corporations (Pune, Nashik, Thane and Kolhapur) on sky-signs and hoardings while grant and renewal of such licences.

The HC said there was no illegality for the municipal corporation to fix and enhance the licence fees and levy fees for grant or renewal of licence.

It said if civic bodies' powers of regulation are not recognised, then there would be a chaotic situation where sky-signs, hoardings and billboards are displayed at unfettered discretion by those who install them.

"Such a regime cannot be permissible," the HC said, adding there was no infirmity or illegality in the decision taken by the municipal corporations.

The court, in its order, noted that sky-signs, hoardings and billboards play a pivotal role in the public surroundings of cities and hence any decision taken by civic bodies necessarily involves substantive and important consideration to public interest and any compromise on public interest is non-negotiable.

The bench said when sky-signs and hoardings determine the skyline of modern cities, their regulation and control in the best manner have assumed significant proportions.

"There cannot be any myopic approach in this regard," it said.

As per the petitioners, the licence fees imposed on hoardings and sky-signs were unreasonably high and hence discriminatory.

The court, however, refused to accept this contention and said the rates fixed are not so "excessive, arbitrary or unreasonable".

The court said the provisions of the Maharashtra Municipal Corporations Act include the powers of the municipal commissioner to levy licence fees on sky-signs and hoardings and also to regulate them.

"It is quite clear that the municipal commissioner has the power to issue licences on payment of fees, which may be charged at such rates as fixed by the commissioner from time to time and as sanctioned by the municipal corporation," the HC said.

The power is not only to grant licences upon levy of fees but also to renew such licences on payment of fees, the court added.

"The municipal corporations have complete legal authority to levy licence fees in granting/renewing sky-signs and hoardings used for the purpose of advertising," the HC said.

The court, while dismissing the petitions, termed it a "luxury litigation" which has taken enormous judicial time and that the petitioner's whole motive was commercial in nature and to excessively enhance their profits.

The court noted that the modern licensing requirements are monumentally different from what was prevalent in yesteryears and for such reasons, the regulation and control as postulated by the provisions of the Maharashtra Municipal Corporations Act needs to be applied as expected in the contemporary times.

The bench noted in its order that in contemporary times, the landscape of such hoardings has undergone a profound transformation as it now no longer just has painted metal boards but high-resolution electronic screens that allow multiple advertisements throughout the day.

This transformation has induced significant changes in the regulatory control and safety mandates, owing to the increased sale and complexity of the sky-signs and hoarding structures, it said.

The court said the control and regulation of such hoardings in modern times is a significant challenge for the municipal bodies that are caught between a balance to be brought about by such technological advancements, in discharging their civic obligations coupled with the onerous responsibility of safeguarding and preserving public interest.