Published On : Mon, Oct 28th, 2013

NMC’s crackdown against erring companies that have failed to pay advertising tax

Nagpur News: The Estate Department of NMC have launched a crackdown on companies including Airtel, Idea Cellular, Reliance, cadbury’s et al to recover their dues on account of advertising tax. Advertisements on establishments like kirana shops, wine shops, general stores, banks, etc. that were hitherto not charged by the NMC have now come under the Estate Department’s scanner.

Pic by Amol

Pic by Amol

Though many companies have paid the license fee for advertising and for putting up sign boards on small and big establishments of their respective brands many have failed to follow suit.

“We have started removing their boards at Central Avenue, Mahal and Gandhibag area to start with. This is in pursuance of the letter written to that effect by the Estate Department to all the zonal heads,” said Raju Bhiwgade, Assistant Commissioner of Zone 6.

The Estate Department had written letters to all the zones to begin the process of removal of shop boards of companies that have failed to deposit the advertising tax. Earlier, these companies were served with a notice too but they failed to comply with it, said an official of the Estate Department.


Bhiwgade said that the crackdown will continue till all the boards are removed. Companies that have huge dues include Airtel – 42 lakh, Idea Cellular – 33 lakh, Reliance – 32 lakh, Asian Paints – 15 lakh. Other companies against whom action will be initiated are LG Electronics, Cadbury’s, Tata Teleservices, etc. The exercise is being carried out under the supervision of Deputy Commissioner Sanjay Kakde.

Meanwhile, A K Gandhi Cellular, the authorized dealer for Nokia, has withdrawn its case against the Estate Department from the High Court. The petition was filed against levy of advertising tax by the NMC.

Interestingly, the Estate Department have already amassed over Rs 2 crore in revenue from advertising tax, it was learnt.

 Rohnikant Matey