BBMP fails to collect over Rs 50 Crore in dues from advertising agencies for skywalk space

Bengaluru: In a major setback the Bruhat Bengaluru Mahanagara Palike (BBMP) has failed to collect more than Rs 50 crore from advertising agencies that have been provided space on city skywalks.

The civic body had awarded tenders to nine agencies for constructing pedestrian overbridges and renting out advertising space on them. However, the companies have failed to fulfill their financial obligations, including ground rent, advertisement fees, taxes, and GST payments to the BBMP.

Reportedly, the BBMP has issued 36 demand notices to the companies, urging them to settle their outstanding dues. The total amount of pending dues is estimated to be over Rs 26 crore, which escalates to more than Rs 50 crore with a penalty of 18%. These companies have constructed a total of 36 skywalks across the city, including in Jayanagar 3rd block and in front of Yeshwantpur railway station.

Additionally, even after the contracts of some companies expired in 2017, 2019, 2020, and 2021, they continue to utilize the advertising space on the skywalks, denying the BBMP any revenue.