Decision on cell towers by Aug-end: HC

The Supreme Court had on June 22 refused to pass a stay order on the MCD levying enhanced charges — currently logged at Rs 2 lakh per tower— on operators for use of the 5,364 mobile towers located within its jurisdiction. It had given cellular operators three days to pay half the increased fee,while directing the MCD to not cash the FDRs placed in trust with the HC Registry,until the High Court took a final decision.

The apex court had also said it would not adjudicate the issue of the “legality” of the hike as it was already pending before the High Court.

On Thursday,the HC Division Bench sent back the matter to the single judge bench with a request to take up the matter and dispose of it by August.

The court will look into whether the MCD has the legislative authority to frame new rules on the licence fee. It will also decide whether the fee was “compensatory” or “regulatory” in nature.

While the operators have alleged that the fee was compensatory in nature as the MCD was not giving any services in return,the civic body has averred that the fee is regulatory and they were not obligated to provide any services.

The MCD had on April 8 hiked the licence fee from the earlier one-time payment of Rs 1 lakh to Rs 5 lakh for every five years. As the MCD began its sealing drive against “illegal” mobile towers,the operators approached the High Court. The High Court on May 13 restrained the sealing.

On May 31,a single judge bench of the High Court reduced the enhanced fee from Rs 5 lakh to Rs 2 lakh.