Despite contracts ending, ads in bus shelters continue, BBMP fails to recover over ₹100 crore

Despite the tender agreement between advertising agencies and the Bruhat Bengaluru Mahanagara Palike (BBMP) over erecting bus shelters and putting up advertisements ending a few years back, hoardings are still displayed illegally, even as the civic body has failed to recover over ₹100 crore.

Bengaluru

Despite the tender agreement between advertising agencies and the Bruhat Bengaluru Mahanagara Palike (BBMP) over erecting bus shelters and putting up advertisements ending a few years back, hoardings are still displayed illegally, even as the civic body has failed to recover over ₹100 crore.

Now, a complaint has been filed with Deputy Chief Minister (Dy.CM) and Bengaluru Development Minister (BDM), D. K. Shivakumar seeking action against BBMP officials who have allowed display of advertisements even after completion of the agreement period and to blacklist defaulting companies. 

The documents accessed by The Hindu show that in 2022, Assistant Commissioner (Advertisement), BBMP issued 25 demand notices to four different companies. While the agreement of some companies ended in 2017, others ended in 2018, and 2019. These companies bagged tenders to construct nearly 600 bus shelters across the city. 

The documents show that 25 separate agreements were made with the companies in 2015, 2016, and 2017 in different packages. The companies should pay ground rent, advertisement tax/fee, service tax, and goods and service tax. The companies which bagged tenders first build small bus shelters and then provide space for advertisers. 

According to the demand notices, the total pending money is pegged at ₹33 crore (from the date of completion of work to the date of the tender period ended) excluding the fine. The notice says barring the 2022-23 fiscal, an 18% fine will be laid under The Interest Act, 1978. “If calculated, the companies owe about ₹120 crore to the BBMP. The fine is levied for each month, including for the months after the agreement period ended,” said S. Amaresh, Managing Trustee, Right to Information Study Centre, who has filed a complaint with Mr. Shivakumar. 

Mr. Amaresh alleged that some of the officials in nexus with these companies have allowed continuation of advertisement display. The companies collect money from advertisers but are not paying the BBMP its due. He demanded a probe in this connection. He said while BBMP claims shortage of funds, it is least interested in plugging revenue leakage.