Karnataka assembly clears bill to regulate hoardings, enables ad fee collection

The Karnataka Legislative Assembly has cleared a key amendment Bill aimed at tightening regulation of outdoor advertising and formalising revenue collection from hoardings and billboards across urban local bodies, according to media reports.

The Karnataka Municipalities and Certain Other Laws (Amendment) Bill, 2026, was introduced by Urban Development and Town Planning Minister B. S. Suresha and passed in the House on Monday.

Ad fees to be standardised across urban local bodies

As per media reports, the legislation empowers municipal councils and corporations to impose advertisement fees on individuals or entities displaying ads across land parcels, buildings, walls, hoardings and similar structures within their jurisdiction.

The fee structure will be determined by respective local bodies through resolutions, within a broader framework of minimum and maximum rates to be prescribed by the state government.

The move is expected to bring greater uniformity and accountability to outdoor advertising, which has largely remained fragmented across cities.

Prior approval mandatory for display

The Bill makes it mandatory for advertisers to obtain written approval from municipal authorities before displaying any advertisement. This approval will be contingent on compliance with local by-laws and payment of the applicable fee.

Authorities can deny permission if either condition is not met, effectively tightening enforcement mechanisms around outdoor media.

Crackdown on unauthorised hoardings

Media reports indicate that the amendment gives municipal bodies stronger powers to act against illegal advertisements. Officials can issue notices to property owners or occupiers directing them to remove unauthorised hoardings.

If the directive is not followed, authorities are empowered to enter premises and remove or demolish such structures.

Penalties will apply to violations, with delayed payments attracting interest of 18% per annum until dues are cleared. Recovery mechanisms will be aligned with property tax norms, including the possibility of seizing and auctioning advertisement materials.

Exemptions and retrospective validation

Certain categories have been kept outside the purview of the fee structure, including advertisements related to municipal meetings and elections, as well as those linked to candidates contesting polls.

The Bill also validates past collections of advertisement-related taxes, cess or fees by local bodies, stating that such levies will be deemed lawful irrespective of prior judicial rulings, according to media reports.

Focus on revenue and compliance

During discussions in the Assembly, Minister B. S. Suresha said the intent of the legislation is to curb unauthorised hoardings and ensure that municipal bodies are able to capture revenue from outdoor advertising.

He noted that a large number of hoardings have been installed without tax payments and indicated that the government aims to bring them under a more formalised system, potentially including tendering processes.

The Bill is also expected to cover advertisements placed on government and private land, including those on personal property, though media reports suggest that structures on one’s own property may not be forcibly removed.