RELIANCE INFRATEL LIMITED Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) The common challenge raised in all these writ petitions is in respect of the power and authority of the State / local authority to realise tax / fees on erection of mobile towers by the Petitioners and also as to the exorbitant hike in the 'initial permit fee'; the subsequent yearly 'renewal fees' and also the 'compounding / settlement fees'. The main ground of challenge is that no power or authority is vested with the State to issue any Circulars/ Directions/ Rules; it being a subject coming under Entry No. 31 of List I of the Seventh Schedule of the Constitution of India, to which field there cannot be any intrusion by the State. It is also pointed out that the impugned proceedings are in conflict with the clear stipulations under Sections 10(c) and 12 of the Indian Telegraph Act, 1885 (for short 'the Act, 1885'); insofar as it enables realisation of only the 'expenses' incurred by the local authority and no other amount is payable for installation of mobile towers by the Petitioners, who are the licensees under Section 4 of the Act, 1885. It is further contended that the Central Government had recently notified 2016 Rules i.e. the Indian Telegraph Right of Way Rules, 2016 (for short, '2016 Rules') and in the said circumstance, since the field is taken over by the Central Government and since the same has been implemented in the State, no tax or fees can be realised by the local authorities with reference to the Instructions/ Directions/ Rules issued by the State.

(2.) The genesis of the dispute reveals that, way back on 06.06.2006, a Circular was issued by the State, addressing to the local authorities to cause realisation of one time permit fee while granting sanction for erection of mobile towers in the area under jurisdiction of the Municipal Corporations / Municipalities / Gram Panchayats and also for realisation of the yearly renewal fees. The fee structure was as given below :

(3.) Later, the State Government issued the Chhattisgarh Municipal Corporation (Erection of Temporary Tower or Structure for Cellular Mobile Phone) Rules, 2010 (for short, 'the 2010 Rules') providing for realisation of one time permit fee, the yearly renewal fee and the compounding/settlement fee as given in the earlier Circular dated 18.11.2009. This made the aggrieved parties to challenge the said Rules by filing separate writ petitions, raising almost similar challenge as to legislative competency and ultra vires nature of the Rules stated as in conflict with the specific provisions contained in the Act, 1885 and all such other grounds. Writ Petition (C) Nos. 6324/2011, 6527/2011, 7334/2011, 7359/2011, 207/2012, 1752/2012, 192/2013, 129/2017 and 3482/2018 raise the challenge against the Rules as above.