Mumbai, Dec 11: The Bombay High Court has upheld the authority of municipal corporations to regulate, fix and enhance licence fees for sky-signs, hoardings and billboards, dismissing a batch of over 20 petitions filed by advertising agencies challenging the revised fee structures.
Court Finds No Illegality in Revised Fees
A bench of Justices Girish Kulkarni and Advait Sethna on Tuesday ruled that there is “no illegality” in the decision of civic bodies to levy fees for the grant or renewal of licences for hoardings. The petitions were filed against the municipal corporations of Pune, Nashik, Thane and Kolhapur, which had revised the licence fee slabs.
Unregulated Hoardings Would Create Chaos, Says HC
Emphasising the need for regulatory control, the court observed that if such powers of the municipal commissioner are not recognised, 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 bench said, holding that there was no infirmity in the corporations’ decisions.
Public Interest at the Centre of Civic Decisions
The court said hoardings and sky-signs play a crucial role in shaping the public landscape of modern cities and any civic decision in that regard must be rooted in public interest. “Any compromise on public interest is non-negotiable,” the bench noted.
Petitioners’ Claims on Excessive Fees Rejected
The petitioners had argued that the newly imposed fees were unreasonably high, arbitrary and discriminatory. The bench disagreed, observing that the revised rates were “not so excessive, arbitrary or unreasonable” as to warrant judicial interference.
Municipal Commissioners Empowered by Statute, HC Clarifies
Referring to the Maharashtra Municipal Act, the court held that the statute expressly authorises the municipal commissioner to levy licence fees and regulate hoardings.
“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 bench said. This power, it clarified, extends not only to issuance but also renewal of licences.
HC Calls the Petitions ‘Luxury Litigation’
Dismissing the petitions, the HC categorised them as “luxury litigation” driven by commercial motives. The bench remarked that the challenge had consumed “enormous judicial time”, even though the petitioners were essentially seeking to enhance profits.
Hoarding Industry’s Technological Shift Requires Stricter Controls
The court further observed that the hoarding industry has evolved dramatically — from traditional painted boards to large digital screens capable of displaying multiple advertisements. The judges noted that this shift has brought in “profound transformation” in scale, technology and complexity, necessitating stricter regulatory control.
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Safety Concerns Heightened by Digital Hoardings
This technological evolution, the court said, has also heightened safety concerns. “The control and regulation of such hoardings in modern times is a significant challenge for the municipal bodies, caught between technological advancements and their civic obligations coupled with the onerous responsibility of safeguarding and preserving public interest,” the bench remarked.
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