BMC, railways fight over revenue from billboards in Mumbai
The civic body, in 2017, approached the Bombay high court, contending the advertisers should pay them, and not the railways. The HC, however, shot down the claim. BMC now plans to move SC.
The Brihanmumbai Municipal Corporation (BMC) and railways have locked horns yet again, this time over the revenue generated from billboards put up on railway premises that face the rail overbridges.
Why the fight? While the billboards are put up on land belonging to the railways, the civic body claims the ones facing the roads are aimed at motorists, and not train travellers, and hence the revenue generated through it should be paid to them. With the railway authorities rubbishing the claims, the battle is all set to reach the Supreme Court.
The civic body, in 2017, approached the Bombay high court, contending the advertisers should pay them, and not the railways. The HC, however, shot down the claim. BMC now plans to move SC.
Between 2008 and 2010, municipal commissioner wrote to the railways, stating they should seek a written permission from BMC to allow such sky-signs facing rail overbridges.
Referring to its guidelines in 2016, the civic body asked the railways to either allow BMC to collect revenue generated from such billboards or to pay tax to the corporation.
A senior civic official on condition of anonymity said, “That revenue belongs to us. The motorists seeing the billboard are travelling on BMC’s roads. If the railways don’t want to lose out on that revenue, they can change the direction of the billboards, instead of targeting vehicular traffic. How else will we get the revenue?”
In response to this, divisional railway manager of the western railways Mukul Jain said, “This is a long standing issue between railways and BMC. The court ruled in our favour. We will seek legal opinion if BMC pursues the matter further. Logically, a lot of advertisements can be viewed from municipal roads. BMC’s claims cannot stand in such a case.”