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There should be no levy of toll on the DND flyway as the Noida Toll Bridge has already recovered project cost, maintenance cost, and substantial profits, hence there is no case for levy of further toll, the top court held.
The Supreme Court also slammed the formula for computing project cost and held that the language is crafted to allow recovery in perpetuity, which is inconsistent with the constitution. The court came down heavily on the Noida Authority for lack of tender inviting competitive bids before selection of Noida Toll Bridge.
ILFS is the promoter of Noida Toll Bridge Company with a 26.37% shareholding.
In 2016, Allahabad High Court ruled that the company could no longer charge toll, user fee from vehicles using DND as the firm had already recovered returns, interest and cost.
The High Court had also earlier slammed the faulty formula for project cost, as per the formula 100 years is not enough to recover cost.
However, Noida Toll Bridge Co challenged the Allahabad High Court order in Supreme Court, which had refused to stay order in 2017 and DND remains toll free as of today.
User fees or toll for National Highways are calculated based on two sets of rules. For publicly funded toll plazas (EPC/HAM/BOT-Annuity), the National Highways Fee (Determination of Rates and Collection) Rules, 2008 apply, and for BOT (Toll) fee plazas, the then applicable Fee Rules and provisions of the Concession Agreement are used.
According to the 2008 Rules, the toll rate for a section of a four-lane or more national highway is calculated as: Toll rate = Length of the section (km) x Base rate per km (Rs/km).
Following the latest Supreme Court ruling, the shares of Noida Toll Bridge Co fell over 5% to ₹18.52 on NSE at 11:15 am.
First Published: Dec 20, 2024 11:25 AM IST
