Bombay HC upholds civic bodies’ right to levy licence fees on hoardings and sky-signs

New Delhi: Civic bodies have the power to regulate and levy fees for the grant and renewal of licences for sky-signs, hoardings and billboards, the Bombay High Court has held while dismissing petitions challenging municipal corporations’ decisions to levy such fees.

A bench of Justices G S Kulkarni and Advait Sethna, in an order passed on Tuesday and made available on Thursday, said sky-signs, hoardings and billboards shape the skyline of modern cities, and their regulation and control have assumed significance. The court said there cannot be a “myopic approach” on the issue.

The petitions challenged the levy and enhancement of licence fees by municipal corporations of Pune, Nashik, Thane and Kolhapur for granting and renewing licences for sky-signs and hoardings used for advertising.

Rejecting the challenge, the High Court said there was no illegality in the civic bodies fixing and enhancing licence fees, and levying fees for the grant or renewal of licences.

The bench said if civic bodies’ regulatory powers are not recognised, it would lead to a chaotic situation where sky-signs, hoardings and billboards are displayed at the unfettered discretion of those who install them. “Such a regime cannot be permissible,” it said, adding there was no infirmity in the municipal corporations’ decisions.

The court noted that sky-signs, hoardings and billboards play a pivotal role in the public surroundings of cities. It said decisions by civic bodies necessarily involve substantive consideration of public interest, and any compromise on public interest is non-negotiable.

The petitioners had argued that the licence fees were unreasonably high and discriminatory. The court refused to accept the contention and held that the rates fixed were not “excessive, arbitrary or unreasonable”.

Referring to the Maharashtra Municipal Corporations Act, the bench said the provisions include the municipal commissioner’s powers to regulate sky-signs and hoardings and to levy licence fees. It said the commissioner can issue licences on payment of fees at rates fixed from time to time and sanctioned by the municipal corporation.

The court added that the power extends not only to granting licences but also to renewing them on payment of fees, and held that municipal corporations have complete legal authority to levy such fees for advertising hoardings and sky-signs.

While dismissing the petitions, the High Court termed the matter “luxury litigation” that had consumed enormous judicial time, and said the petitioners’ motive was commercial in nature and aimed at enhancing profits.

The bench also noted that modern licensing requirements are significantly different from earlier years, and regulation under the Act must be applied in contemporary conditions. It said the hoarding landscape has transformed from painted metal boards to high-resolution electronic screens that can run multiple advertisements throughout the day.

This shift, the court said, has increased the scale and complexity of sky-sign and hoarding structures, altering safety mandates and regulatory control requirements. The court added that regulating such structures is a significant challenge for municipal bodies, which must balance technological advancements with civic obligations and the responsibility to safeguard public interest.