Action by the corporation to impact digital payment transactions and goal of Digital India in Pune
Pune Municipal Corporation has initiated sealing/demolition drive against the mobile towers for realizing the property tax on the mobile towers in the wake of recent judgment by honorable supreme court. The honourable supreme court, vide the said judgment has given a 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. However, before the industry could exercise this option, PMC started coercive action by sealing of towers/offices of the concerned companies in Pune. The demands made are highly arbitrary and without any break up.
While the country is going through a great transformation vide 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 the consumers/ banks/ payment portal / gateways etc. and the contribution of the 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 authorities, will ultimately result into failing of the mobile network. Hence, creating chaos in digital payments methods, aggregating the call drops and lead to connectivity issues in the area.
On this situation, Mr. T R Dua, Director General, TAIPA said “It is a non-supportive action by municipal corporation of Pune to initiate 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 from retrospective effect and the quantum of such taxes is settled as it will result into connectivity issues and most importantly chaos for the public in using digital payments methods. Hence the action of the municipal corporation is unfortunate and we appeal to them to discontinue the sealing drive till further directions are received from the Honorable High Court.”
Moreover, mobile towers are the pivotal element in enabling telecom connectivity for the masses and any coercive actions such as sealing of 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 be facilitated by establishing a robust telecom infrastructure. Telecom Infrastructure is the bedrock for achieving the vision of Digital India.
The Local Bodies/ Municipal Corporation 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.
Further, Mr. Dua said “The Hon’ble Supreme Court, while terming ‘towers’ as ‘building’ has given a 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, industry has filed a clarificatory application in the Hon’ble Supreme Court. Further, 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.”
IP’s have approached the Court to stop such coercive actions immediately.
