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IOAA Contemplates Legal Action Against BMC

The Brihanmumbai Municipal Corporation (BMC) and the Out-of-Home (OOH) advertising industry, the Indian Outdoor Advertising Association (IOAA) is considering legal action against the BMC. The crux of the dispute lies in the BMC’s proposed amendments to the OOH advertising policy, which the IOAA contends undermines the existing regulations established in April 2022.

The BMC’s current OOH policy, formalised in the state Gazette on 29 April 2022, is intended to be in effect until 2031. This policy emerged as a response to a Bombay High Court directive in June 2019, following the expiry of the previous policy, which had lapsed in 2017. The IOAA argues that the BMC cannot unilaterally alter or nullify a policy that is legally mandated to be effective for a decade under the Mumbai Municipal Corporation Act of 1888.

Industry stakeholders have raised concerns about the potential financial fallout from these changes. They argue that numerous investments and agreements with housing societies were made under the assurance of the 2022 policy’s stability. If the policy is altered or repealed, these investments could become financially untenable. Further complicating matters, the BMC has reportedly suspended the issuance of new permissions and the renewal of existing licenses, citing the forthcoming revised policy, which remains under development. The draft policy introduces stringent restrictions on hoarding placements, including size limitations and prohibitions on various locations such as building terraces and footpaths.

The draft also outlines that licenses for existing hoardings in these restricted locations will not be renewed. Critics of the draft policy argue that it lacks legislative validity, having not been reviewed by the BMC’s legislative body, which has been suspended for two years. This raises questions about the policy’s procedural integrity and its adherence to democratic principles, given the lack of stakeholder consultation. The industry contends that the BMC’s policy changes are a reactionary measure following the tragic collapse of an illegal hoarding in Ghatkopar, which resulted in 17 deaths. They assert that penalising the entire OOH sector for a singular instance of regulatory failure is unjust.

The 58-page draft policy is currently open for public feedback until 9 September, following an extension from the initial deadline. Once enacted, it will govern outdoor advertising, including digital formats, for the next decade. Among other provisions, the policy proposes mandatory insurance coverage for billboards and an annual 10% increase in license fees, which has further drawn industry ire.

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