GHMC, HMRL lock horns over hoarding fee

A dispute has arisen between Hyderabad Metro Rail Limited (HMRL) and Greater Hyderabad Municipal Corporation (GHMC) over a reduction in hoarding rates, which the GHMC has not agreed to despite several requests from HMRL and the state government. Earlier, GHMC had sent a demand notice to HMRL covering three financial years, asking the latter to immediately clear its dues. However, HMRL has said the dues will be cleared only once rates have been reduced.

On April 4, 2016, the HMRL selected 876 piers out of a total of 2,700 to display advertisements and requested GHMC to issue a relevant demand notice. The civic body, however, fixed special rates for hoardings on Metro pillars, despite the HMRL’s request to levy charges at par with conventional hoardings,

GHMC FIXED special rates for hoardings on Metro pillars, despite the HMRL’s request to levy charges at par with conventional hoardings.

claiming that charges for displays on these central dividers are too high. However, GHMC commissioner B. Janardhan Reddy has said the rates cannot be reduced, citing a special committee constituted to examine the matter.

According to available data, GHMC has requested HMRL to clear pending dues amounting to `5.59 crore. Responding to demand notices, HMRL paid `1.25 crore on March 24 under protest, requesting a reduction in special charges. The dispute is principally concerning the levying of charges on ‘S’ category hoardings on Metro piers, where HMRL has been requesting GHMC to charge conventional rates.

The corporation has been charging `3,000 per sq m for S category hoardings, `2,750 for A category, `2,500 for B category and `2,250 for C category hoardings on central dividers, whereas the conventional rates are `1,500 for S category, `1,350 for A category, 1,200 for B category and `850 for C category.

Additionally, GHMC has also written to the state regarding early payment of property tax pertaining to constructions and site development as per the agreement with HMRL and Larsen & Toubro (L&T). As per latest assessments, HMRL owes the civic body `7.63 crore. In a letter to HMRL, GHMC has also stated that the government will take a decision on whether to levy service charges on L&T Metro for utilising municipal facilities, in accordance with a SC order.