A private FM broadcasting station has filed a petition in the Bombay High Court seeking a stay on a Union government order asking it to pay yearly licence fee or face withdrawal of licence.
The petition, filed by Radio Mid-Day West India Pvt Ltd and its station head Sharik Patel, is likely to come up for hearing this week. Advocate Suresh Pakale will argue the matter on behalf of the petitioner. The respondents are the Centre and the I&B ministry.
The petitioner had obtained licence to operate FM broadcasting station in Mumbai. In the first year, it paid licence fee amounting to Rs 9.75 crore (Rs 97.5 million) and furnished a bank guarantee of the similar amount. In the second year, it paid Rs 11.21 crore (Rs 112.1 million) as licence fee.
On June 27 last year, the petitioner requested the Union government to alter the clauses in the original agreement. It suggested reduction in licence fees and changes in the revenue sharing and terms of operation.
The Union government, on July 24, 2003, appointed the Amit Mitra committee to go into the request of the petitioner. The committee submitted its report in November last year.
However, on January 19 this year, the government notified broadcasting as telecommunication service and on February 12 it submitted the Mitra committee report to the Telecom Regulatory Authority of India for its recommendations.