BMC OOH Policy: IOAA contemplates legal recourse saying existing policy valid till 2031

In a fresh development that could give a breather to the Out-of-Home advertising industry, the Indian Outdoor Advertising Association (IOAA) is contemplating to drag the Brihanmumbai Municipal Corporation (BMC) to the high court on the grounds that the existing policy introduced in April 2022 is valid till 2031. 

The BMC’s existing policy was notified in the state Gazette on April 29, 2022. Interestingly, the OOH policy was formulated after the Bombay High Court order in this regard in June 2019. The previous policy formulated in 2008 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,” an IOAA official told e4m.  

Media owners say, “Based on the 2022 policy, we have signed various deals and agreements with the housing societies and invested a huge amount of money. Everything will go into vain.” 

They also alleged that the BMC has stopped giving permissions/licenses and extension of licenses even as the draft policy is still in the making. “No policy can be implemented retrospectively. However, BMC is deferring all approvals citing the upcoming policy. Such denials are verbal,” allege OOH players.  

Notably, the draft policy proposes several restrictions on hoarding placements which includes a cap on size (40/40 ft) and prohibiting hoardings on building terraces, construction fences, dead walls, and glass facades, footpaths, traffic islands, medians, and gantries. The policy states that licenses of all such existing hoarding will not be renewed. 

“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,” claimed members. 

Media owners also allege that no stakeholder was consulted for the formulation of the policy which is not only against the democratic norms but also violates the BMC’s long-standing tradition of holding discussions for any major policy. 

Members argue that the policy is nothing but a knee jerk reaction of the BMC following the Ghatkopar hoarding that killed 17 people this May. “The Ghatkopar hoarding was flouting all norms and was an illegal structure. No permitted or legal hoarding has led to any collapse or incident so far. The entire OOH industry can’t be punished for the oversight of the authorities which allowed it to run an illegal hoarding.” 

BMC officials could not be reached for comments over the weekend. 

Policy open for feedback till Sep 9

The 58-page draft policy is currently open for public suggestions and objections until September 9 till 3 pm, after an extension of the previous deadline of Aug 26. Once approved, the new policy will oversee all outdoor advertising approvals, including digital formats, for the next decade from the date of issuance. 

While media owners' bodies are still working on a detailed response to the proposed policy changes, their main concerns include mandatory insurance coverage (Rs 5 lakh to Rs 1 crore) which they have to shell out for every billboard to cover potential loss or damage caused by hoardings. 

They also question BMC’s proposal to increase the advertisement license fee by 10 percent every year. 

Besides, they claim that the policy risks creating visual clutter, undermining the city’s aesthetic appeal, and potentially falling short in ensuring public safety—ironically, the very issue the policy aims to address post the Ghatkopar billboard tragedy which killed 17. 

Curious case of Dec 2022 BMC circular 

While the April 2022 policy is the guiding force for the OOH sector in Mumbai, some of the OOH members shared a 2 Dec 2022 BMC notification. It stated, “While the formulation of the policy is in progress, the Licence Department intends to implement the following modifications in the prevailing policy as per the ‘The Greater Mumbai Municipal Corporation (Regulation and Control of the Display at Sky-Signs and Advertisement) guidelines-2022’ published by the State government until an exhaustive policy follows.” 

Industry members wonder what led to the issuance of this circular after eight months of notifying the policy. Some claimed that the two conflicting circulars helped crooks to exploit the loopholes.