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Thursday, October 27, 2016

Delhi Noida Direct (DND) flyway Becomes Toll Free,Major Relief to Commuters Wednesday Oct 26,2016






The Allahabad High Court Ruled that commuters using the Delhi Noida Direct (DND) flyway will not have to pay toll to cross the bridge, the toll company operating the flyway has moved the Supreme Court. The Noida Toll Bridge Company Limited (NTBCL) has appealed to the top court against the High Court ruling.


On Wednesday Oct 26,2016 , a bench of Justice Arun Tandon and Justice Sunita Agrawal held that the concession agreement between the government and the concessionaire company IL&FS was “unfair.” The ruling came in response to a PIL filed by the Federation Of Noida Resident Welfare Association. The high court bench said since the NTBCL had “recovered all reasonable returns” from the bridge, it had no right to charge toll on the bridge.

“The concessionaire, according to their own financial statements, has recovered Rs 810.18 crore (approximately) from toll income till 31.3.2014 and after deduction of O&M expenses and corporate income tax, the surplus was Rs 578.80 crores… They have further realised user toll two and half years thereafter, which comes up to around Rs 300 crore…” the bench held on Wednesday Oct 26,2016

The court also struck down the relevant section of the agreement by which the toll company was calculating its costs and amount recoverable from user fee.

The company, in a statement on Wednesday Oct 26,2016 said, “The judgment has held the two provisions relating to levy and collection of fee to be inoperative and has directed the company to stop collecting user fee. In compliance, the firm has stopped collection of toll. But an appeal will be filed in the Supreme Court.”


In a relief to commuters, the Supreme Court of India(SCI)on Friday Oct 28,2016 refused to stay Allahabad High Court’s order that declared DND flyway toll free on Wednesday.

The SCI also indicated that it’ll appoint an auditor or ask Comptroller and Auditor General (CAG) to audit NTBCL accounts.

 The SCIwill now pass the order after Court’s Diwali vacation after November 06,2016

 Earlier on Wednesday Oct 26,2016, the Allahabad HC bench of Justice Arun Tandon and Justice Sunita Agrawal heard a PIL filed by the Federation of Noida Resident Welfare Association in 2012, challenging the levy and collection of toll in the name of user fee by the company.

The SCI observed that further collection of toll was illegal and directed the state government to ensure that it was not levied any further.

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