Sion Panvel Tollways Pvt. Ltd. and Ors. v. The State of Maharashtra and Ors. - (08 Sep 2015)

A heavy price for not charging toll

MANU/MH/2377/2015

Constitution

In a case where the State government issued notifications on charging toll on highways contrary to the Concession Agreement with the Petitioner, it was held that such deviation was within the purview of State policy for it affected toll collection at 52 other sites. The Petitioner-Concessionaire, contracted with to undertake improvement work on the Mumbai-Panvel highway, had claimed that the agreement enabled it to charge toll for about 17 years, to recover capital costs and reasonable profits, with only a limited class of vehicles exempt from such charges. However, by delayed notification, permission was granted to charge toll for only six months and Light Motor Vehicles, or 95 per cent of all toll collection on the highway, were exempted from payment of toll. The Court accepted State’s submission that it would reimburse the Petitioner for exempted vehicles that pass through the toll booths; the same would only require sophisticated monitoring equipment to determine movement of Light Motor Vehicles and a formula to reconcile Petitioner’s loss due to such exemption. Submissions of the Petitioner being ‘left in lurch’ were dismissed by the Court, despite the State refusing to have such a formula determined by an independent Arbitral Tribunal, relying rather on its own committee.

Relevant : Munching on a packet of chips or burning yourself on too hot a coffee that you received in lieu of change at a toll booth? You are better off with jingling change in your pocket, or so the National Highways Authority of India believes. In fact, it can prove rather an expensive transaction for the toll collector too, with penalties for this practice ranging up to Rs. 1 lakh. If such vital highway consumer empowerment is what you desire, NHAI's website nhtis.org has a welter of information on toll booths around the country. Never again will you be caught without the exact change, unless you prefer your frothing hot balance in a paper cup.

Tags : HIGHWAYS TOLL PUBLIC POLICY