The Hindu 05.04.2010
GHMC clips private agency’s wings
Special Correspondent
HYDERABAD: The GHMC has prepared ground to cancel powers given to a private agency to collect advertisement fee for glow/neon signboards by issuing notices following uproar from several quarters, including traders.
Yet, fee collection will continue and notices issued in the name of the municipal corporation itself and fee too will be collected through cheques issued in its name only. The agency, USM Solutions, will confine itself to collecting payments on GHMC’s behalf, disclosed a senior official.
He pointed out that more than 300 cases were filed in the High Court by the traders protesting a private agency issuing notices and collecting fees. The HC is reported to have permitted only GHMC to issue notices or collect payments on its name. And such fees should not be collected for wall writings.
The agency will only get an incentive from the collection made which will be reviewed every three months. Couple of years ago, the civic body, claiming staff shortage, invited private agencies to issue notices and collect ad fees over glow/neon sign boards (estimated to be 1.25 lakh) dividing the capital into four zones with rates fixed at Rs. 1,200, Rs. 1,150, Rs. 800 and Rs. 700 per sq.mt.
USM Solutions took up the project for three years assuring payments of Rs. 10 crore, Rs. 12.5 crore and Rs. 15 crore. It also paid up Rs. 6 crore and another Rs. 4 crore in bank guarantee in the first year despite only two months left for 2008-2009 financial year to close. In its quest to make up, it went after traders only to encounter resistance and court cases with charges of harassment by agents employed by it.
Several trade associations had also urged GHMC to rein in the agency and only charge signboards having sponsors name. Lack of a proper legal framework was another anomaly pointed out.
