Supreme Court Overturns High Court Order, Allows Patna Municipal Corporation to Collect License Fee from Advertising Agencies

Patna: The Supreme Court has reversed a Patna High Court decision, giving the Patna Municipal Corporation (PMC) the authority to collect license fees from advertising agencies after a 12-year-long legal battle. The case involved two advertising agencies, Tibro Ad Bureau and Craft Outdoor Media Private Limited, who had been in dispute with the corporation over license fees for hoardings and advertisements.

The Supreme Court directed these agencies to pay a license fee of Rs 10 per square foot annually, along with 6 percent interest on hoardings already erected. Additionally, the court ordered that in case of delays or non-payment, a recovery process would take place with 10 percent interest applied. This verdict is expected to generate approximately Rs 100 crore in revenue for the PMC.

Previously, in April 2016, the Patna High Court had barred the Municipal Corporation from collecting such fees and had directed the advertising agencies to return fees already paid. However, with the Supreme Court’s ruling, the earlier High Court order has been nullified, and the PMC can now resume collecting fees from those putting up hoardings and advertisements.

Mayor Sita Sahu welcomed the decision, noting that the corporation had been losing significant revenue due to unregulated hoardings. She emphasized that stricter action would now be taken against illegal hoardings and advertisements across the city, and that if the advertising policy is approved by the state government, further improvements in regulation could be expected.