‘Advertisers to face action if ad firms don’t pay fee’

GURUGRAM: The MCG has issued a notice to all firms that advertiser in the city to conduct an audit of advertising agencies hired by them and ensure that they are registered with the corporation. According to MCG officials, while some of the agencies are taking full fees from their clients, they are not paying the corporation, thereby cheating the clients.

“The advertising firms in a few cases have been found to be operating illegally or not in conformity with the newly notified bylaws, keeping their clients in the dark. While they charge full MCG fees from their clients, they are not paying their dues to MCG in violation of the bylaws,” said Vivek Kalia, joint commissioner, MCG.

Kalia said the implementation of the new policy had brought in compliance with the outdoor media space and around 70% of the outdoor media space in the city is now being taxed.

“However, 30% is operating illegally under the cover of some ‘court stays’ causing revenue loss to the corporation,” said Kalia.

The MCG has started drives to identify all such advertisement hoardings and spaces in the city and it has therefore requested all the companies and brands to ensure that their advertising agencies are registered with the corporation. Secondly, they are paying the required fees to MCG and thirdly the agency is not in legal dispute with MCG.

Sources said MCG also found massive ads at multiple places, and that an action would be taken on all of them as well. “All the defaulters will be charged as per ongoing tax rates and in retrospective manner. All such advertisements will face immediate defacement,” said Kalia.

Haryana had notified its advertisement bylaws earlier in 2018, which govern the display of all kinds of media within corporation’s in the state.