Noida Toll Bridge Seeks SC Review of Order Banning Toll on DND Flyway
The Noida Toll Bridge Company Ltd (NTBCL) has taken the matter to the Supreme Court, seeking a review of the December 2024 order that barred it from collecting toll charges on the Delhi-Noida Direct (DND) Flyway. This move comes after the Supreme Court upheld an earlier decision by the Allahabad High Court in 2016, which had halted toll collection on the vital route connecting Delhi and Noida.
The DND flyway, which has been operational since 2001, has become a crucial passage for daily commuters between the two cities, significantly reducing travel time and easing traffic congestion. Prior to the court’s ruling, NTBCL had been charging Rs 28 for a one-way trip or Rs 56 for a round trip. The Supreme Court’s December 2024 decision came as a major relief to commuters who had been burdened by these toll fees. The court agreed with the Allahabad High Court’s stance, asserting that the toll collection by NTBCL was an unfair profit-making activity from public property. It also criticised the New Okhla Industrial Development Authority (NOIDA) for allowing the company to exploit users indefinitely. According to the court, the agreement between NTBCL and NOIDA, which was established in 1997, was unjust and inconsistent with constitutional norms. The court pointed out that NOIDA had exceeded its authority by granting NTBCL the power to levy toll charges, which it deemed as an invalid delegation of power. The Concession Agreement, executed under the build-own-operate-transfer model, had given NTBCL the rights to collect toll charges for the flyway. However, the court’s ruling noted that the company had already recovered both the construction costs and a fair profit since the flyway opened over two decades ago.
In its ruling, the court cited a report from the Comptroller and Auditor General (CAG) that revealed NTBCL had already recouped expenses amounting to Rs 1,136 crore by March 2016. The report indicated that NTBCL had overestimated its expenditures, including costs for legal fees, travel expenses, and excessive salaries for employees. The court expressed concern that no entity should be allowed to make an unjust profit from public infrastructure at the expense of the public. The legal battle over toll collection was sparked by a petition from the Federation of Noida Residents Welfare Associations, which challenged the toll as an unfair ‘user fee’. The residents argued that the flyway had long since paid for itself, and the continued toll charges were no longer justified.
NTBCL’s appeal for a review of the ruling has stirred fresh debate over the issue of toll fees on public infrastructure. The company argues that the toll charges were necessary to maintain and manage the flyway, while critics insist that the company has already made substantial profits and should no longer be allowed to levy tolls. The outcome of this case is crucial not just for the commuters who rely on the DND flyway, but also for the broader issue of toll collection on public infrastructure across India. As the legal process unfolds, it remains to be seen whether the Supreme Court will revise its decision or uphold the ban on toll charges, continuing the debate on the balance between private profit and public access to essential services. This ruling has sparked a wider conversation about the fairness of toll collection on infrastructure projects that are meant to serve the public, and it could set a precedent for similar cases across the country. As the matter progresses, it will likely impact the way toll agreements are structured in the future.
