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Pune Municipal Corporation to initiate sealing of mobile towers

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DQW Bureau
New Update
Pune Municipal Corporation to initiate sealing of mobile towers

Pune Municipal Corporation has started a sealing/demolition drive against mobile towers for realizing the property tax on the mobile towers in the wake of recent judgment by the Supreme Court. The Supreme Court, vide their said judgment, has given liberty to the companies involved to agitate the issue with regard to the retrospective operation of the assessment / demand of such taxes and the quantum thereof before the appropriate forum, if so advised.

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However, before the industry could exercise this option, PMC started coercive action by sealing towers/offices of the concerned companies in Pune. The demands made are highly arbitrary and without any breakup.

While the country is going through a great transformation in the wake of demonetization policy and making a paradigm shift to build a less-cash economy, the entire scheme of the Central Government is dependent on digital connectivity of consumers/ banks/ payment portals / gateways, etc. and the contribution of mobile towers in the field of telecommunications is well recognized. The mobile network connectivity is a major factor which shall help achieve the objective of digital India and less-cash economy. At this stage of transformation, any coercive steps toward sealing of mobile towers on behalf of the local bodies, will ultimately result in failing of the mobile network. Hence, this will create chaos in digital payments methods, aggregating the call drops and leading to connectivity issues in the area.

R. Dua, Director General, TAIPA, said, “It is a non-supportive action by the Municipal Corporation of Pune to initiate a sealing/demolition drive against mobile towers. We seek intervention on the issue from higher authorities to direct the concerned authorities to refrain from taking any coercive action against the mobile towers till the issue regarding charging of taxes with retrospective effect and the quantum of such taxes is settled as it will result in connectivity issues and, most importantly, chaos for the public in using digital payments methods. Hence, the action of the Pune Municipal Corporation is unfortunate and we appeal to them to discontinue the sealing drive till further directions are received from the High Court.”

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Moreover, mobile towers are the pivotal element in enabling telecom connectivity for the masses and any coercive actions such as sealing of these sites or any offices will lead to connectivity gaps causing not only call drops but also deterring card transactions. The vision of Digital India aims to transform the country into a digitally-empowered society and knowledge economy. Further, the agenda for a cashless economy and spread of digital transactions can be only facilitated by establishing a robust telecom infrastructure. Strong telecom infrastructure is the backbone for achieving the vision of Digital India.

The local bodies/ municipal corporations had contentiously categorized mobile towers as buildings and hence levied property tax on the same. TAIPA, the industry representative body of tower infrastructure providers, had challenged the matter in the Mumbai High Court and then in the Hon’ble Supreme Court.

Dua further said, “The Hon’ble Supreme Court, while terming ‘towers’ as ‘buildings’, has given  liberty to the tower infrastructure companies involved to agitate the issue with regard to the quantum of such tax and periodicity for which the tax to be levied before the appropriate forum.  Since the judgement needs more clarity, the industry has filed a clarificatory application in the Hon’ble Supreme Court.  Further, the industry is currently evaluating the decision and is consulting senior lawyers to take up the ‘retrospective operation of the assessment / demand of such taxes and the quantum of such tax’ before the appropriate forum. PMC has adopted pressure tactics and initiated serious coercive actions, thereby disrupting smooth telecom operations in the area under jurisdiction of PMC. This is impeding the rollout of telecom infrastructure and has brought it to a grinding halt.”

 

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