Bhubaneswar Civic Authority Takes Tough Stand Against Fee Defaulters
The Bhubaneswar Municipal Corporation (BMC) has implemented stringent measures against persistent defaulters by deciding to blacklist 15 private advertisers who have consistently failed to pay their advertisement licence fees. This decisive action comes after these habitual defaulters caused the civic body a substantial financial loss of Rs 7 crore during the fiscal year 2025-26, which concluded on Tuesday.
Significant Revenue Impact and Collection Statistics
In the recently concluded fiscal year, BMC demonstrated strong revenue performance in several areas despite the advertisement fee shortfall. The corporation earned Rs 21 crore from advertisement licences, Rs 9 crore from trade licences, and Rs 2 crore from parking fees. Notably, holding tax collection exceeded Rs 100 crore, reaching an impressive Rs 115 crore, even though numerous major defaulters failed to comply with their payment obligations.
"We had the potential to collect approximately Rs 28 crore from advertisement licences, but certain advertisers have been systematically evading their licence fee payments year after year," explained BMC deputy commissioner (revenue) Ajay Mohanty. "This has resulted in a total pendency of Rs 7 crore against these defaulters. We will not provide them with any further opportunities and have decided to blacklist them permanently."
Legal Action Under OPDR Act
The municipal corporation plans to institute cases against the blacklisted advertisers under the Odisha Public Demand Recovery (OPDR) Act of 1962. This legal framework provides BMC with substantial recovery powers, including the authority to confiscate property belonging to defaulting organizations in proportion to the amount owed to the civic body.
"When the OPDR Act is invoked, BMC gains the legal authority to seize property equivalent to the outstanding dues," Mohanty elaborated. "Under this legislation, a designated BMC officer serves as the 'certificate officer,' empowered to initiate certificate cases against defaulters to facilitate recovery proceedings."
Advertisement Revenue Structure and Historical Performance
BMC employs a structured system for advertisement revenue collection, implementing different fee slabs based on advertisement sizes and varieties. The corporation auctions government lands to advertising agencies and generates revenue through these arrangements. Historical data reveals significant growth in this revenue stream, with collections rising from Rs 7 crore in FY 2023-24 to Rs 17 crore in FY 2024-25, before reaching Rs 21 crore in the most recent fiscal year.
Holding Tax Collection Challenges
Beyond advertisement fees, BMC faces challenges in holding tax collection from establishments constructed on Odisha Industrial Infrastructure Development Corporation (Idco) land. Many of these entities have consistently failed to pay their taxes despite receiving repeated reminders from the municipal authority.
The government granted BMC permission to collect holding tax from Idco lands starting from FY 2025-26. Within the total outstanding dues, educational institutions emerge as the largest contributors to unpaid amounts, accounting for approximately Rs 32 crore. The remaining dues are associated with various other establishments, including commercial and institutional units operating on Idco land.
This comprehensive crackdown on defaulters represents BMC's commitment to strengthening municipal finances and ensuring all entities fulfill their financial obligations to support civic infrastructure and services in Bhubaneswar.
