RoshanSpace Brandcom files legal petition against Indian railways

New Delhi: RoshanSpace Brandcom has filed a legal petition challenging the arbitrary allocation of railway hoarding sites under the New, Innovative Non-Fare Revenue Ideas Scheme (NINFRIS). 

The company asserted that the principles of fair and transparent resource distribution are being undermined, setting a concerning precedent for the sector.

A fundamental tenet of public administration is the equitable distribution of state wealth through structured and impartial processes. RoshanSpace highlighted that established practices dictate contracts for public advertising hoardings to be awarded via open and competitive tendering, ensuring equal opportunity for all industry players. However, the petition contended that the Indian Railways has deviated from this norm by allocating sites under NINFRIS without due process, creating an uneven playing field.

The petition by RoshanSpace raised concerns over bypassing competitive bidding, which leads to the allocation of hoarding sites through private negotiations rather than open tenders. It further highlighted unchecked discretion, allowing railway officials autonomy in awarding contracts, violating Article 14 of the Indian Constitution. 

The original purpose of NINFRIS was to test untried concepts for non-fare revenue generation. 

However, RoshanSpace argued that railway landholding sites have been allocated to agencies without due justification or adherence to the scheme’s objectives. The petition also unveiled instances where advertising permissions have been granted without considering technical feasibility, visibility impact, and public safety regulations. This included concerns over obstructed views, interference with railway signage, and non-adherence to the mandated distance between hoardings.

“The policy stipulated a one-year contract, extendable for another year. Nevertheless, the railways have arbitrarily extended the contract for five years, contradicting their own policy. Furthermore, regular tenders are also being awarded for five years, effectively creating unfair competition and compromising railway revenues,” added RoshanSpace Brandcom.

The company said that under the pretext of solar initiatives, over 35 billboards have been allocated to a single entity, even in locations where other billboards already exist, undermining fairness and transparency. Additionally, the railway’s decision to permit the conversion of static solar-powered billboards into digital ones contradicts NINFRIS policy. At the same time, questions remain on the feasibility of fully solar-powered digital billboards due to their high energy requirements. A digital billboard typically requires 12000 KW, while a static billboard needs 450 KW, which is 26 times more than a static billboard. RoshanSpace has demanded a thorough scrutiny of the matter through its legal petition.

Junaid Shaikh, MD of RoshanSpace Brandcom, said, “We refuse to stand by while opaque practices threaten the integrity of our industry. It isn’t just about business; it’s about fairness, accountability, and ensuring that public resources serve the greater good. By challenging these arbitrary practices, we aim to establish a competitive, transparent system that promotes innovation and benefits the entire OOH industry. We hope with this petition we can implement some changes to the existing practices in the industry.”

RoshanSpace has raised concern about the allocation of railway advertising sites to competitors in a manner that obstructs existing premium hoardings, leading to financial and operational losses. The company has also questioned the lack of clear communication from railway authorities regarding these allocations, raising broader concerns about the management and valuation of railway assets. The petition argues that certain advertising sites classified under NINFRIS do not meet the scheme’s criteria of ‘new and innovative’ and should instead be governed by standard competitive bidding procedures.

RoshanSpace stresses that these opaque practices jeopardise not only fair business competition but also public interest and safety. The petition seeks a judicial review of NINFRIS and urges railway authorities to uphold the principles of transparency, fairness, and structured procurement in public resource allocation.