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MCGM to Bombay high court: Can’t waive licence fee for Mumbai’s OOH owners

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MUMBAI: On 19 June, in an unexpected turn of events, the municipal corporation of greater Mumbai (MCGM) refused to waive off the licence fees even if the hoardings in Mumbai are advertising civic messages.

The bench dealt with a number of petitions filed by advertising agencies, holding licences for hoarding sites in Mumbai. The hoarding owners were seeking waiving of the licence fees. The licence holders claimed that they are not using their hoarding sites since March due to the outbreak of Covid2019 and they have been only advertising civic messages.

"There is no provision in any statute, rule, policy or license condition that contemplates that if the licence holders are unable to display the advertisement for any reason whatsoever, they will be entitled to waiver of licence fees. They have failed to make out any constitutional or legal right for such waiver of the license fees," the MCGM said in an affidavit.

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"Our guidelines specifically contemplate that it is mandatory on part of the agency to display a civic message as and when directed by us for a period of 15 days in a year for which no fees will be payable," the affidavit read.

The civic body mentioned that it had sent notices to a number of agencies to put messages to spread awareness about the disease in March.

Clarifying in the affidavit, MCGM said, “Hoardings were required to be displayed for a period of 10 days only and there was no need to give any fresh notice or letter for removal of the same. The agencies are intentionally misreading our notice. The notice does not contemplate that any further instructions would be issued for removing the hoardings.”

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The civic body also revealed that it had waived licence fees for the month of April of Rs 7.49 crore and that the civic body itself went through a loss of nearly Rs 70 lakh.

"The commercial arrangements between the private advertisers and the licencees are not within our scope and ambit. We are in no way responsible for any such breakdown in the commercial relationship of the licencees and the same cannot be a ground for a grant of a waiver of licence fees without any legal or the statutory basis for the same," the MCGM said while urging the bench to dismiss the plea.

The eight Mumbai OOH owners who filed the petition in the Bombay HC for waiver of licence fees are — Creation Publicity Pvt Ltd, Bright Advertising Pvt Ltd, Orion Advertisers, Anurag Sites, Em Vee Advertising Company, Pingle Outdoor, Yoag Advertisers and Pioneer Publicity Corporation Ltd.

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The firms have been asked to submit replies in writing, by 26 June.

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MAM

Brands push beyond compliance as trust takes centre stage

ASCI AdTrust Summit 2026 spotlights shift from legal checks to credibility.

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MUMBAI: In a world where a disclaimer can be legally sound yet socially suspect, brands are learning that compliance may tick boxes but trust wins markets. At the inaugural ASCI AdTrust Summit 2026, a panel on “Beyond Compliance: The New Currency of Trust” unpacked a growing industry reality: the gap between what the law permits and what consumers accept is widening and fast.

Moderated by Meenakshi Ramkumar of National Law School of India University, the discussion brought together leaders across law, marketing and academia to examine how brands must evolve in a digital ecosystem increasingly shaped by scrutiny, scepticism and speed.

Ramkumar set the tone by highlighting a critical shift, advertising today operates in the same digital space that fuels misinformation, scams and fake news, making credibility harder to establish. “The challenge is not just about what brands do, but the broader context of low institutional trust,” she noted, adding that when violations go unchecked, trust erodes not just in brands but in the regulatory system itself.

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This vacuum, she said, has given rise to consumer activism from boycotts to social media backlash as a parallel accountability mechanism.

For Amit Bhasin, Chief Legal Officer at Marico, the distinction was clear, legal compliance is non negotiable, but insufficient. “Compliance is the minimum threshold. The real challenge is staying aligned with changing consumer expectations,” he said.

He pointed to how advertising narratives have evolved from traditional depictions of gender roles to more shared responsibilities reflecting a broader societal shift. “Earlier, it was fine to show one person doing the household work. Today, that may not land well. Consumers expect brands to reflect reality,” Bhasin observed.

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He also highlighted internal debates where campaigns that may be legally permissible are still rejected for being culturally insensitive, noting that responsible advertising often requires asking uncomfortable questions before the public does.

If compliance is the baseline, reputation is the battlefield.

Bhasin noted that reputational risk has become a far greater concern than legal exposure, particularly in an era where campaigns can be dissected within hours online. “Earlier, a controversial ad might invite a newspaper editorial. Today, within hours, you’re at the centre of a storm,” he said.

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Brands, he added, now evaluate campaigns through a dual lens legal viability and reputational vulnerability with the latter often proving more decisive.

From a healthcare perspective, Satish Sahoo of Cipla Health underscored the complexity of operating within fragmented yet stringent regulatory frameworks, spanning drugs, food, cosmetics and Ayush. “Anything under a drug licence is the most tightly regulated,” he said, adding that this necessitates proactive, not reactive, compliance.

He shared an example from the oral rehydration salts (ORS) category, where Cipla resisted the temptation to position products aggressively despite competitive pressure. “Our product is WHO compliant, and our communication reflects that. We chose not to blur the lines, even if others did,” he noted.

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The long term payoff, he suggested, lies in credibility built over consistency, not quick wins.

Yet, as Harsha N of National Law School of India University pointed out, even perfect compliance does not guarantee trust. Drawing from historical and modern examples from exaggerated product claims in the 1800s to contemporary environmental and health advertising, he argued that legal frameworks often lag behind consumer expectations. “A brand can be fully compliant and still be perceived as misleading,” he said, citing instances where fine print disclosures fail to reach or convince the average consumer. He added that larger companies carry a disproportionate responsibility to set ethical benchmarks, even in areas where the law remains silent.

The conversation also turned to digital advertising, where the challenge extends beyond content to how ads are experienced. From algorithmic targeting to personalised messaging, brands now operate in an environment where regulation struggles to keep pace with technology.

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Sahoo noted that social media has amplified awareness, with influencers and consumers increasingly scrutinising product claims and calling out inconsistencies. “Awareness has gone up dramatically. People are questioning what goes into products and what brands are saying,” he said.

The role of self regulatory bodies such as Advertising Standards Council of India also came under the spotlight.

Harsha acknowledged that while SROs play a crucial role, they are not immune to criticism, particularly around perceived conflicts of interest and enforcement gaps. “SROs have a higher threshold of responsibility not just to interpret the law, but to anticipate societal expectations,” he said.

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He added that failures in self regulation often push the burden back onto government intervention, underscoring the need for stronger, more proactive oversight.

One of the more nuanced debates centred on whether building trust comes at a cost. While Sahoo acknowledged that quality and compliance can increase costs, he argued that companies must absorb them as part of their long term strategy.

Bhasin, however, framed the challenge differently not as cost, but as competitiveness in a market where not all players play by the same rules. “The real tension is when others cut corners and you choose not to,” he said.

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The panel concluded with a call to embed trust into business metrics.

Sahoo suggested that organisations must go beyond revenue targets to include consumer equity and trust based KPIs, ensuring that ethical considerations are not sidelined in the pursuit of growth. “Trust sounds abstract, but it can translate into measurable consumer equity,” he said.

As the discussion wrapped up, one message stood out: the rules of advertising are being rewritten not just by regulators, but by consumers themselves. In an ecosystem where attention is fleeting and scepticism is high, brands that merely comply may survive, but those that build trust are the ones that endure.

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