IOAA Considers Legal Action Against BMC Over OOH Policy

In a recent development that could offer relief to the Out-of-Home (OOH) advertising industry, the Indian Outdoor Advertising Association (IOAA) is considering taking legal action against the Brihanmumbai Municipal Corporation (BMC) in the high court. The IOAA argues that the current policy, introduced in April 2022 is valid until 2031.

The BMC's existing policy was officially notified in the state Gazette on 29 April 29 2022. Notably, the OOH policy was developed following a Bombay High Court order in June 2019, after the previous policy which had been formulated in 2008 and lapsed in 2017.

"As per the Mumbai Municipal Corporation Act 1888, all policies and guidelines are applicable for a term of 10 years. The civic body can't abruptly remove the existing policy eight years pre-term and enforce a new set of rules", said an IOAA official.

Media owners point out that under the 2022 policy, they've entered into numerous deals and agreements with housing societies, committing substantial financial resources to these projects. If the policy is overturned or altered, all their investments could be rendered worthless.

They also claimed that the BMC has 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.

"No policy can be implemented retrospectively. However, BMC is deferring all approvals citing the upcoming policy. Such denials are verbal", emphasise the OOH players.

New Restrictions & Their Implications
The draft policy introduces multiple 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. The policy further stipulates that licenses for all existing hoardings in these locations will not be renewed.

Members claimed, “BMC's draft policy lacks legislative validity as well. The proposed policy has not gone through the legislative body of the BMC which is suspended for two years. Legally, their move doesn't hold grounds.”

Media owners claim that the policy was formulated without any stakeholder consultation which they argue not only goes against democratic principles but also breaks with the BMC's long-standing practice of engaging in discussions before implementing major policies.

Members of the industry contend that the policy is a knee-jerk reaction from the BMC following the tragic Ghatkopar hoarding collapse that killed 17 people in May.

The Ghatkopar hoarding violated all regulations and was an illegal structure. No permitted or legal hoarding has ever caused a collapse or incident. It's unjust to penalise the entire OOH industry for the authorities' failure to address an illegal hoarding, the members explained.

Public Feedback Window Extended: What’s At Stake?
The 58-page draft policy is currently open for public suggestions and objections until September 9 at 3 pm, following an extension from the previous deadline of August 26. Once approved, the new policy will regulate all outdoor advertising, including digital formats, for the next decade.

While media owners' associations are preparing a detailed response to the proposed changes, they have raised several key concerns. Among them is the requirement for mandatory insurance coverage ranging from Rs five lakh to Rs one crore for each billboard, intended to cover potential losses or damages caused by hoardings.

They are also questioning BMC's proposal to increase the advertisement license fee by 10 per cent annually. Additionally, there are fears that the policy could lead to visual clutter, detracting from the city's aesthetic appeal, and might fall short of addressing public safety concerns - the very issue it seeks to resolve in the aftermath of the Ghatkopar billboard tragedy that claimed 17 lives.