Toll Plazas Are Not for Minting Money from Public, J&K HC Asks NHAI To Reduce Toll by 80% on 2 Plazas on NH44

Moneylife Digital Team 27 February 2025

Consumer Interest

Coming down heavily on the national highways authority of India (NHAI) and toll plaza operators for arbitrary toll collection, the Jammu & Kashmir and Ladakh High Court, citing ongoing construction and poor road conditions, directed NHAI to collect only 20% toll fee from Lakhanpur and Ban toll plazas on the National Highway-44 (NH-44) from Pathankot in Punjab to Udhampur in Jammu.

This ruling is expected to provide significant relief to commuters and pilgrims travelling to the Vaishno Devi shrine who have long protested against the excessive toll burden on substandard roads.

In an order, the bench of chief justice Tashi Rabstan and justice MA Choudhary says, "Though the toll fees at the toll plazas contribute to the construction, maintenance, enhancement of high-quality road infrastructure, highways, expressways and toll fee is essential for infrastructure development, however, the respondents must ensure for fair and equitable tolling fee and that establishment of these toll plazas should not serve merely as a revenue-generating mechanism or to mint money from the general public. Further, rapid increase in toll plazas raises several concerns among the general public. The respondents must ensure that toll plazas are not placed at every nook and corner of the state. There should not be mushrooming of toll plazas."

The HC also observed that the toll collection detail reveals that during the period, the respondents (Union government, NHAI and J&K government) collected more than Rs1,243 crore from Lakhanpur toll plaza, Thandi Khui toll plaza and Bann toll plaza. As per the news reports, the toll revenue of NHAI in 2020 was Rs24,000 crore, and with the facilitation of FASTags from January 2020, toll gate charges or revenue in 2021 was anticipated to reach Rs34,000 crore, the bench noted.

Sugandha Sawhney, who filed the public interest litigation (PIL), argued that tolls were being unfairly levied at Lakhanpur, Thandi Khui (now closed), and Ban toll plazas, despite significant portions of the highway being under construction. The court found that nearly 60%-70% of the Pathankot-Udhampur stretch remains incomplete, leading to extensive delays, diversions, and increased fuel consumption for commuters.

The ruling also mandated that no toll plazas be established within 60km of each other, in line with the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The Court found that the distance between certain toll plazas, such as Sarore and Ban, violated this regulation, leading to undue financial burdens on commuters.

The court's decision follows mounting public frustration over deteriorating road conditions, high toll fees, and delays in highway completion. It also referenced Union minister Nitin Gadkari's statement that tolls should not be collected if roads are in poor condition.

Authorities have been given a four-month deadline to reconsider toll rates across the region and ensure fair pricing. Additionally, any illegally established toll plazas must be dismantled within two months.

Further, the judgement highlighted concerns over the employment of individuals with criminal backgrounds at toll booths, directing authorities to conduct police verifications before hiring staff.

Comments

User

Kamal Garg

4 months ago

It is high time that NHAI look into rampant misuse of toll plaza working by keep on collecting tolls even when the road is not complete, lacks basic infra and convenience facilities. Notification/approval for start of collection of toll should be given only after all the required facilities and road is properly constructed.

balshanthi

4 months ago

It is high time that the toll in all over India should reduced to half of the existing one. Will Shri Nitin gadgiri MP look in. ?