Nagpur: The Nagpur Bench of Bombay High Court has granted the advertising agencies temporary relief. The High Court has directed Nagpur Municipal Corporation (NMC) not to take coercive action against the advertising agencies who have installed hoardings for eight weeks.
The court directive came after M/s Signpost India Private Limited and 23 other advertising agencies approached the High Court challenging the action of NMC against them in connection with the increased licence fees.
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Sat 21 Dec. 2024
The challenge raised in this writ petition is to the levy of Advertisement/Licence Fee by the Nagpur Municipal Corporation, which according to the petitioners, is without any authority of law in view of deletion of Entry 55 from the Union List in the Seventh Schedule of the Constitution of India pursuant to the 101st Amendment Act, 2016. The Court had passed an order on October 25, 2021, without granting an opportunity of hearing to the NMC. By this order the court had stayed action against the advertising agencies.
Senior Counsel Adv C S Kaptan argued for about eight days for the NMC and the court lifted the stay by order delivered on March 25, 2022. The High Court in its new order has granted eight weeks for recovery of licence fees and ground rent. NMC has also been directed to maintain a separate account relating to these transactions.
The amount thus collected will be adjusted after the final settlement of the case. The petitioners have challenged the rule itself and the final decision will be taken on it. The NMC has been directed to adjust the amount accordingly. NMC has been directed to file an affidavit to this effect within ten days.
