Court Rules Against Unjust Toll Collection on Incomplete NH-44

The Hon’ble High Court of Jammu & Kashmir and Ladakh in the matter of Sugandha Sawhney v. Union of India and Ors., (WP(C) PIL No.12/2023), dated February 25, 2025, held that complete toll tax cannot be charged on an incomplete and deteriorated highway, and ordered a reduction of toll fees to 20% until the highway is operational.

In the present case, the petitioner, vide a Public Interest Litigation (PIL), sought exemption from the levy of toll tax at Lakhanpur, Thandi Khui, and Ban Toll Plazas on National Highway-44 (NH-44), covering the stretch from Pathankot (Punjab) to Udhampur (Jammu & Kashmir). The said highway has been under construction since December 2021 as part of the Delhi-Amritsar-Katra Expressway project, with 60% to 70% of the stretch remaining incomplete. Despite the unfinished state of the highway, toll collection continued unabated at the aforementioned toll plazas. On January 26, 2024, the Thandi Khui Toll Plaza was decommissioned, yet instead of alleviating the toll burden, the charge was redistributed between the Lakhanpur and Ban Toll Plazas, resulting in an escalation of toll charges despite the deteriorating condition of the infrastructure. Therefore, the Hon’ble Court examined whether charging tolls under such circumstances was justified.

The Hon’ble High Court noted that large sections of the road had been reduced to single-lane dirt paths, causing significant inconvenience to commuters, increased travel time, and additional wear and tear on vehicles. It emphasised that tolls are meant to provide users with well-maintained infrastructure, and collecting exorbitant toll fees for substandard road conditions violated the principle of fair service. The Hon’ble Court found that instead of suspending toll collection during construction, the authorities had increased toll fees, exacerbating public hardship. It referenced the Hon’ble Supreme Court’s ruling in the case of DSC-Viacon Ventures Pvt. Ltd. v. Lal Manohar Pandey, (Civil Appeal Nos.6781-6782 of 2015), dated August 27, 2015, which held that toll fees must be proportionate to the road’s condition.

The Hon’ble High Court further took cognizance of blatant violations of the National Highways Fee (Determination of Rates and Collection) Rules, 2008, which mandate a minimum spacing of 60 km between two toll plazas. It noted that the Sarore and Bann Toll Plazas were separated by only 47 km, rendering the toll collection at these locations legally untenable. The Court held that such unauthorised toll plazas resulted in an undue financial burden on commuters and amounted to an arbitrary imposition of fees without adherence to statutory requirements. Additionally, the Court expressed serious concerns over the employment of individuals with criminal backgrounds at toll plazas. It emphasised that the presence of such individuals posed significant risks to public safety and law enforcement, making it imperative for the authorities to ensure strict background verification before appointing personnel at toll collection points.

Accordingly, the Hon’ble Court issued the following directions:

1. Withdrawal of the order redistributing toll influence from Thandi Khui Toll Plaza to Lakhanpur and Ban Toll Plazas, which was implemented on January 26, 2024. The withdrawal must be executed within one week.
2. Reduction of toll fees at Lakhanpur and Ban Toll Plazas to 20% of the pre-26.01.2024 rates, effective immediately. Full toll collection shall resume only after certification by an independent surveyor confirming the highway’s completion.
3. Prohibition on establishing toll plazas within 60 kilometers of each other on NH-44. Any existing toll plazas violating this rule in Jammu & Kashmir or Ladakh must be removed within two months.
4. Reassessment of toll rates to ensure fairness, preventing undue financial burden on commuters. The Union Ministry of Road Transport and Highways must take a decision within four months.
5. Strict prohibition on the employment of individuals with criminal backgrounds at toll plazas. All employees must undergo mandatory police verification, with local SHOs held accountable for any lapses.

This ruling upholds the principle that toll collection must be fair, lawful, and proportionate to road conditions, ensuring that commuters are not unfairly burdened by unjust toll practices. It reinforces the need for accountability and transparency in toll administration, prioritising public interest over revenue generation.