BBMP allows ads on skywalks in Bengaluru, but won’t take money for the same, avoids collecting over ₹50 crore from advertisers
The Hindu
A BBMP official alleged, “A key reason for zero recovery of revenue is the nexus between these companies and some of officials in the civic body...” BBMP officials claim that they will call for fresh tenders, but are mum about recovering pending dues. Civic officials issued notices in December 2022, but did not follow up on them.
The Bruhat Bengaluru Mahanagara Palike (BBMP) has failed to collect over ₹50 crore from advertising agencies who have been provided space in skywalks in the city.
Nine agencies bagged tenders from the civic body for construction of pedestrian overbridges and to rent space on the same. The companies are expected to pay ground rent, advertisement fee, tax and other payments, including GST, to the BBMP.
Documents accessed by The Hindu show that the BBMP has issued 36 demand notices seeking payment of dues from the companies. While the total pending dues is pegged at over ₹26 crore, the amount goes up to over ₹50 crore with 18% penalty.
The companies have built 36 skywalks, including in Jayanagar 3rd block and in front of Yeshwantpur railway station.
The documents also show that some companies took nearly six years to complete the work. For instance, a skywalk near Tavarekere junction was completed in 2018 while the agreement was signed in 2012. While the delay has caused huge loss to the exchequer due to escalation of cost, the BBMP is yet to collect the money earned from these civic projects.
On the other hand, despite the contracts of some of the companies having ended in 2017, 2019, 2020 and 2021, they continue to use the space for advertisements, while denying revenue to the BBMP.
A BBMP official alleged, “A key reason for zero recovery of revenue is the nexus between these companies and some of officials in the civic body while ads continued to be displayed on the skywalks.”
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