Urban News

While partly allowing a batch of writ petitions filed by Hutchinson Essar South Ltd and others, Justice HN Nagmohan Das held that private mobile operators have to obtain a licence from local bodies under the relevant enactments for erecting mobile towers. If they have already erected towers, then they have to be regularised. The local bodies have to consider them in accordance with the law keeping in mind public safety and health, the court said.

Further, the court has directed the petitioner companies to pay a sum of Rs 12,000 a year per mobile tower as tax to the local bodies subject to amendment of taxation rules by the local bodies.

The petitioner companies had challenged the demand notice issued by various urban local bodies in the state demanding payment of tax towards mobile towers.

The petitioners stated that the Karnataka Municipal Corporation Act and Karnataka Panchayat Raj Act have no authority to levy taxes on mobile towers.

The petitioners were erecting and installing towers on private properties after obtaining necessary permission by way of licence. They further contended that the provisions of KMC and Panchayat Raj Act do not specify the levy and collection of annual permission fee and installation charges of mobile towers, so local bodies are barred from levying and collecting any fee to erect mobile towers.

"Once the mobile companies erect mobile towers within the limits of local bodies by obtaining permission from them, they fall under the definition of the word 'building'. If a building is erected within the limits of the local bodies, they are empowered to levy and collect taxes according to the provisions of enactment and rules,'' the court observed.

"The BBMP levies taxes on mobile towers at `12,000 a year per tower. Till an amendment is made in their rules, local bodies are at liberty to adopt rules framed by the BBMP for levying taxes on mobile towers," the court held.