Delhi-Noida-Direct Flyway Becomes Toll Free
In a judgement that may bring relief to millions of commuters in the National Capital Region (NCR), the Allahabad High Court on Wednesday ruled that no toll tax shall henceforth be taken from those using the 9.2-km-long, eight-lane Delhi-Noida Direct (DND) flyway.
A division bench comprising Justices Arun Tandon and Sunita Agarwal passed the order while allowing a public interest litigation filed by the Federation of Noida Residents' Welfare Association. The PIL, which was filed in 2012, had challenged the "levy and collection of toll in the name of user fee by Noida Toll Bridge Company". The high court had on August 8 reserved its judgement on the plea.
In a more than 100-page judgement, the court held, "The user fee which is being levied/realised is not supported by the legal provisions relied upon by the Concessionaire (Noida Toll Bridge Company), Infrastructure Leaning and Financial Services (promoter and developer of the project) and the Noida Authority."
It said that the "right to levy and collect user fee from the commuters as conferred upon the Concessionaire under the concession agreement suffers from excessive delegation and is contrary to the provisions the UP Industrial Development Act".
The court noted that "the Concessionaire, according to their own financial statements, has recovered Rs 810.18 crore from toll income from the date of commencement of the project till 31.03.2014 and after deduction of operation and maintenance expenses and corporate income tax, the surplus was Rs 578.80 crore (computed before interest, depreciation, and lease rental received by the Concessionaire)".
"They have further realised user fee/toll two-and-a-half years thereafter between 01.04.2014 and 30.09.2016 which, as per the collection of user fee in the year 2013-14 would work out to an additional sum of Rs 300 crore (approximately).
"We are, therefore, more than satisfied that the Concessionaire cannot now recover the user fees from the users/commuters of the Noida Toll Bridge the DND Flyover," the high court said.
In the PIL, the petitioners had submitted that they, upon "being aggrieved by the demand of the user fee made an enquiry and it then transpired that Noida Authority had authorised" Noida Toll Bridge Company - which was a private company - "to impose and realise user fee under a concession agreement" and "given power to increase the toll charges from time to time".
According to the petitioners, the toll charges were initially "Rs 8 per entry of car which was later hiked to Rs 22 and then Rs 25 w.e.f. 09.02.2012. Similarly, two-wheelers are charged Rs 12 per vehicle".
The court, however, made it clear that "we are not entering into the rights of the contracting parties under the concession agreement. It is open for them to make any agreements which they choose to agree".
"We are only concerned with the rights of users/commuters of Noida Toll Bridge known as DND Flyway who are being illegally taxed in the name of user fee," the high court said.
Meanwhile, Noida Toll Bridge Company Ltd said in a BSE filing that it, in compliance with the judgement of the high court, has stopped collection of user fee, subject to the outcome of its appeal against the verdict before the Supreme Court.
The company is in the process of filing an appeal in the Supreme Court against this judgement. The rights of the company to the DND under the Concession Agreement remain valid and remains asset of the company, it said.
As has been disclosed in the annual reports of the company, the local resident welfare associations (Federation of Noida Resident Welfare Associations or FONRWA) had filed a public interest litigation in the Allahabad High Court challenging the validity of the concession agreement.
"The Honourable High Court of Judicature at Allahabad has pronounced its judgement today at 4 pm. The judgement although upholding the concession agreement has held the two specific provisions relating to levy and collection of fee to be inoperative and has directed the company to stop collecting the user fee thereby making the facility Toll Free," it said.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.