Supreme Court rejects Noida Toll Bridge Company’s plea to impose tolls on DND flyway

Delhi-Noida Flyway to remain toll-free: SC

On December 20, 2024, the Supreme Court rejected the Noida Toll Bridge Company Ltd. (NTBCL)’s appeal to impose tolls on commuters using the Delhi Noida Direct (DND) flyway. A bench of Justices Surya Kant and Ujjal Bhuyan upheld the 2016 judgment of the Allahabad High Court, which had struck down the concessionaire agreement with NTBCL. The High Court had ruled that NTBCL had already recovered its costs and made sufficient profits, and therefore, the toll collection should cease.

The Supreme Court concurred with the High Court’s findings, stating that NOIDA had overstepped its authority by delegating the power to levy tolls to NTBCL through the concession agreement. The Court found this delegation of authority exceeded NOIDA’s powers and led to “unjust enrichment” for NTBCL at the cost of the public.

In its ruling, the Court pointed out that the general public had been forced to pay substantial amounts through tolls without justifiable cause. The Court noted that NTBCL had already recovered the project cost, and maintenance expenses, and made profits from its initial investment. The toll collection, therefore, was deemed unnecessary, and the perpetual nature of the concessionaire agreement was criticized for benefiting NTBCL unfairly.

The Supreme Court also relied on a report from the Comptroller and Auditor General (CAG) of India, which highlighted improper practices and unrealistic return rates that contributed to an unjust burden on the users of the flyway. The Court stated that the absence of a competitive bidding process for the concessionaire agreement violated the principles of transparency and fairness, contravening Article 14 of the Constitution, which mandates equality before the law.

The ruling emphasized that when a state undertakes a project involving public funds and assets, its actions must be just, transparent, and based on a well-defined policy. The absence of a public tender or invitation for competitive bids in selecting NTBCL was deemed arbitrary and illegal under the Constitution.

This landmark decision has brought an end to the toll collection on the DND flyway, ensuring relief to the public and holding NTBCL accountable for its actions.

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