Reliance Infocom Ltd must pay fee

MUMBAI: In a case involving Reliance Infocom Ltd, the question whether a cellphone operator company must pay fees to the municipal authorities for erecting network towers atop buildings has yet again come to the fore.
       
Division bench of Justices S B Mhase and A A Kumbhakoni on Thursday has held that Anil Dhirubhai Ambani Group owned company must pay fees for constructing network tower on buildings in the jurisdiction of Akola Municipal Corporation.
       
But earlier another bench of the high court had taken opposite view in similar cases so the matter has now been referred to the Chief Justice for hearing by a larger bench, without any interim relief for Reliance.
       
The court was hearing a petition filed by Reliance challenging a notification of the state government regarding charging of fees by the municipal corporation for constructing network towers over buildings. It claimed that state does not have power under the Maharashtra Region Town Planning (MRTP) Act to impose such fees.
       
The current bench stated that the notification was valid as it rationalizes the fees charged by the different municipal corporation. The corporations have been charging fees under provisions of the Development Control Regulations (DCR) of the corporation, additional government pleader Vinay Sonpal said.      

However, earlier the bench of Justices R M S Khandeparkar and V M Kanade, while hearing similar petitions by other operators, had struck down the notification on the grounds that the government did not have the power to give direction to pay fees under the MRTP Act, said Sonpal.
       
Also, the power of giving directions for smooth functioning of the municipal corporations did not empower the state to levy such fees under the MRTP Act, court had earlier said.
       
The state's stand in the present case is that the fees (premium) are being charged by the corporation for the use of additional floor space index (FSI), which communication towers consume, under the Development Control Regulations (DCR).        

Since 1992, different corporations have been charging different premium. To rationalise the premium charges and ensure smooth functioning of the corporation, the state government issued a notification under the provisions of the MRTP Act on July 4, 2005.
       
According to the said notification, the telecommunication operator has to deposit Rs 50,000 and the premium is charged at the rate of land value as per ready reckoner of the area occupied by the tower. Also the height premium will be charged at Rs 10,000 per running metre.
       
The bench led by Justice Mhase has approved this notification.
       
"Whatever view the larger bench will take on this issue may have impact on the other telecommunication operators as well," Sonpal said.