Ban on Toll Tax collection. With the decision of the Supreme Court, the commuters of Delhi and Noida became very happy.

The Supreme Court on Friday, December 20, upheld the decision of the Allahabad High Court, in which the Noida Toll Bridge Company was stripped of the right to collect toll on the DND Flyway.

Why was toll closed on DND flyway?

The DND Flyway, which connects Noida and Delhi, is managed by the Noida Toll Bridge Company. The Supreme Court said that this company has already recovered the entire cost of the project, maintenance cost and profits. Therefore there is no justification for imposing further toll.

impact of decision

Soon after this decision, Noida Toll Bridge shares fell 5% to its lower circuit limit. Company promoter IL&FS (Infrastructure Leasing & Financial Services) has 26.37% stake in this company.

criticism of the court

The Supreme Court declared the formula used to calculate the cost of the project as unconstitutional. The Court said that the language of the formula was such that it would always allow recovery, which is contrary to the Constitution. Additionally, the Noida Authority was also reprimanded for failing to invite competitive bids for the project.

Old decision of High Court

In 2016, the Allahabad High Court had said that the Noida Toll Bridge Company had already recovered returns, interest and costs from the DND Flyway. In such a situation, it is unfair to take toll. The court had also said that according to the formula of this project, even 100 years would not be enough to recover the cost.

Role of Supreme Court

Noida Toll Bridge Company had challenged the High Court order in the Supreme Court. However, the Supreme Court had refused to lift the ban on toll in 2017 itself. Thus, the DND Flyway is still toll free.