IOAA considers high court legal action against BMC

In a recent development, the Indian Outdoor Advertising Association (IOAA) is considering legal action against the Brihanmumbai Municipal Corporation (BMC) in the high court. The IOAA contends that the BMC’s current outdoor advertising policy, introduced in April 2022, should remain valid until 2031, as per the Mumbai Municipal Corporation Act of 1888, which stipulates a 10-year term for policies and guidelines.

The BMC’s policy, officially notified on April 29, 2022, was developed following a Bombay High Court order in June 2019. This order addressed the lapse of the previous policy, which was formulated in 2008 and expired in 2017. 

According to an IOAA official, the BMC cannot abruptly invalidate the existing policy eight years before its term ends and impose new regulations. Media owners argue that under the 2022 policy, they have made significant financial commitments through various deals and agreements with housing societies. If the policy is overturned or modified, these investments could be jeopardized.

As reported by BW MARKETING The BMC has reportedly halted the issuance of new permissions and licenses, as well as the extension of existing ones, even though the draft policy is still under development. The OOH industry claims that the BMC’s actions—based on verbal communication—contradict legal principles regarding retrospective policy implementation.

The draft policy introduces several restrictions on hoarding placements, including a size limit of 40x40 feet and bans on hoardings on building terraces, construction fences, dead walls, glass facades, footpaths, traffic islands, medians, and gantries. It also proposes not renewing licenses for existing hoardings in these locations. The IOAA argues that the draft policy lacks legislative validity, as it has not been reviewed by the BMC’s legislative body, which has been suspended for two years.

Critics also claim that the policy was created without stakeholder consultation, violating democratic norms and deviating from the usual practice of engaging with industry players before implementing major changes. The policy is perceived as a reaction to the Ghatkopar hoarding collapse in May, which resulted in 17 deaths. The Ghatkopar hoarding was illegal and did not comply with existing regulations, leading industry members to argue that it is unfair to penalize the entire OOH sector for this incident.

The 58-page draft policy is currently open for public suggestions and objections until September 9 at 3 p.m., extended from the original deadline of August 26. If approved, the new policy will govern all outdoor advertising, including digital formats, for the next decade.

Media owners are preparing a detailed response to the proposed changes. Their concerns include a new requirement for mandatory insurance coverage ranging from Rs 5 lakh to Rs 1 crore per billboard, intended to cover potential damages. They also question a proposed 10%  annual increase in advertisement license fees and express concerns that the policy could lead to visual clutter and may not adequately address public safety issues, which it aims to address in the wake of the Ghatkopar tragedy.