No permission fees for mobile towers in Gujarat

GANDHINAGAR - The Gujarat High Court Thursday ruled that municipal corporations and municipalities in the state could not levy annual permission fee and installation charges on mobile communication towers, as this violated their powers under the constitution and Municipalities Act.

A division bench of Justice D.A. Mehta and Justice H.N. Devani ruled that levy and recovery of annual permission fees and installation charges on mobile telecommunication towers in the areas covered under municipal corporations/municipalities in Gujarat has been struck down “as being ultra vires the provisions of Article 265 of the Constitution of India as well as provisions of the Bombay Provincial Municipal Corporation Act, 1949 and the Gujarat Municipalities Act, 1963.”

Bharti Infratel Ltd had challenged the demand note issued by the municipalities and municipal corporations asking it to pay permission fees, administrative penalties and rent for its mobile towers. The company also challenged the amended resolution passed by the urban development and urban housing department of the state government.

Its counsel, Viraj Fozdar and Shalin Mehta, stated that the resolution was subject matter of challenge before the high court. It was further submitted that the high court, in its judgment in Indus Towers Ltd vs the state of Gujarat April 22, had quashed and set aside the resolution passed by the authorities.

The bench said that as the court had already rendered its judgment in similar cases hence the petition is allowed and the demand by the municipal bodies cannot be sustained.