Summary: The Bombay High Court decided in favor of the Pune Municipal Corporation (PMC) regarding the collection of license fees for sky-signs and billboards. This decision followed a long legal fight involving several complaints against the fee increase and the PMC's right to impose these fees.
The Case's Background
In 2010, the Pune Municipal Corporation introduced a plan to manage sky-signs and billboards, splitting the city into four zones. This plan aimed to give exclusive advertising rights to the highest bidder in each zone. In 2011, the highest bid was Rs. 222 per square foot per year, which became the new standard for license fees.
M/S. Pioneer Publicity Corporation Pvt. Ltd.'s Complaints
- Fee Increase Dispute: M/S. Pioneer Publicity Corporation Pvt. Ltd. argued that the fee increase was unfair and did not have proper approval from the General Body.
- Backdated Application: The fee was applied retroactively from 2013, which M/S. Pioneer Publicity Corporation Pvt. Ltd. claimed was not allowed.
- Authority to Charge Fees: They argued that removing Entry 55 from the State List under the GST system took away PMC's right to charge these fees.
Court's Findings
- Not a Tax: The court decided that the fee was a regulatory charge, not a tax, and therefore within the PMC's rights.
- Approval Validity: The court confirmed that the backdated approval by the General Body was valid, explaining that the word "sanction" in the law did not mean prior approval was needed.
- Authority to Charge Fees: Despite changes in the GST system, the court stated that the PMC still had the power to charge fees under existing city laws.
Implications of the Judgment
- City Independence: This decision supports the independence of city bodies in managing local issues, including control over advertisements.
- Public Safety: The court stressed the importance of regulating sky-signs for public safety and the appearance of the city.
Summary of the Verdict
The Bombay High Court's decision confirms the PMC's right to charge license fees for sky-signs and billboards. It highlights the balance between local government control and legal rules, setting an example for similar cases in other cities.
"The regulation and control of sky-signs and hoardings assume significant dimensions and responsibility of the municipal authorities," the judgment noted, highlighting the need for careful management of urban landscapes.
This decision not only clarifies the legal rights of city corporations but also shows how city management is changing with new technology and rules.
