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HC upholds ₹222 per sq ft hoarding fee, PMC set to recover ₹100 crore
With the petition filed by hoarding businessmen rejected, PMC can now recover the full amount and add nearly ₹100 crore to its revenue
A division bench of Justices GS Kulkarni and Advait M Sethna of the Bombay High Court on Wednesday upheld the Pune Municipal Corporation’s (PMC) rate of ₹222 per square foot for hoardings. With the petition filed by hoarding businessmen rejected, PMC can now recover the full amount and add nearly ₹100 crore to its revenue.
Advertisers had challenged the hike and said the increase was excessive. The court ruled that PMC has the legal authority to impose and revise hoarding licence fees. It said the GST Act does not stop the civic body from collecting sky sign and licence charges. The bench termed the plea “luxury litigation” and said advertising agencies were avoiding payments despite collecting fees from clients.
A senior PMC legal officer said, “The court has confirmed our authority to levy and revise hoarding charges. This will help us recover long-pending dues and bring discipline to the outdoor advertising sector.”
High court lawyer Abhijit Kulkarni, who represented PMC, said, “It has been a case pending since 2013. The court noted that agencies were avoiding payments even after collecting charges from customers.”
PMC had sent a proposal to the state government in 2022 to increase advertisement fees. The proposal was rejected and the corporation had to collect the old rate of ₹111 per sq ft.
PMC is likely to draft a new proposal to revise advertisement fees again. The administration may also plan higher penalties for unauthorised hoardings.
