BBMP yet to receive Rs 300 crore from advertising agencies

Bengaluru: The agencies that have built bus shelters and pedestrian overpasses (skywalks) in the city under private public partnership (PPP) have arrears of more than Rs 300 crore in land rent and advertising fees. BBMP is struggling to recover these fees.

Skywalks, bus shelters and public toilets built across the city with advertising rights have been leased to private agencies for a period of 20 to 30 years. This amount of land rent and advertising fee has been fixed annually for each station and skywalk. However, none of the agencies are paying the fees adequately.

Private advertisements are being displayed in 1,327 bus shelters, 45 skywalks and 18 public toilets built under private public partnership and earning income. However, the corporation is not paying fees as per the agreement. Rs 298.42 crore is pending from 2016-17 to 2023-24.

The corporation has approved the construction of 2,212 bus shelters, and so far, the construction work of 1,327 shelters has been completed. The construction of bus shelters has been contracted out to private agencies on a design, build, operate and transfer (DBOT) basis.

An advertisement fee of Rs 45,000 to Rs 50,000 per year has been charged for each bus shelter, Rs 780 per month per square meter for shelters on major roads, and Rs 600 per square meter for shelters at other locations. Similarly, private agencies that have built skywalks by acquiring the right to display advertisements are swindling the corporation without paying land rent and advertisement fees.

The rest areas and skywalks, which are limited to displaying advertisements, are a nuisance to passengers and pedestrians. Advertising agencies are constructing skywalks and rest areas only in places that will bring them profit. Even a handful of pedestrians are not crossing the road through the skywalk.

Although the corporation has not spent a single penny on these constructions, there is no income from land rent or advertising. Private agencies have been arrears of crores of rupees since 2016. However, there are allegations that the corporation officials are not taking strict action to recover the arrears.

Apart from income from property tax, advertisement fees are the main source of income for BBMP. Moreover, hundreds of crores of rupees of tax is due in property tax defaulters and tax revision cases. This tax is also not being collected. Meanwhile, there is no income from the skywalk and bus shelters.

Although there is no income from advertising, the government, under pressure from influential agencies, is going to implement a new advertising policy to pave the way for illegal earnings of several crores of rupees.

The officials of the corporation’s advertising department have issued demand notices to agencies that have not paid land rent and advertising fees. However, the agencies are not giving in to this. Notices have already been issued to each agency to pay the dues within 15 days. Even after months, no money has been collected. Even the advertisements whose lease period has expired have not been removed.

The private agencies, which have obtained a stay order on the demand notice issued by the corporation, are claiming that local bodies do not have the authority to collect advertising fees. Therefore, the corporation is hesitating to take action to collect the dues.

“A letter has been written to the legal department regarding the lifting of the stay order obtained by the private agencies from the court. The condition has been imposed that land rent and advertisement fees should be paid at the time of signing the agreement for the construction of skywalk and bus shelter under the PPP model. However, the agencies have approached the court,” said an official.