TNSTC Buses Restrained from Using Toll Plazas on the Madurai–Kanyakumari Stretch

In a significant ruling in the case of M/s.Madurai – Kanyakumari Tollway Private Limited and others v. Tamil Nadu State Transport Corporation (WP Nos.31006, 31010, 31012, 31014, 31039, 31041, 31044 & 31046 of 2024 and WMP Nos.33612, 33613, 33616, 33617, 33620, 33621, 33625, 33662, 33664, 33665 & 33666 of 2024), dated July 8, 2025, the Madras High Court restrained the Tamil Nadu State Transport Corporation (TNSTC) from plying its buses through four toll plazas on the Madurai–Kanyakumari stretch of the National Highway in Tamil Nadu, citing persistent toll evasion, statutory non-compliance, and administrative apathy.

The petitioners, Madurai–Kanyakumari Tollway Private Limited, Kanyakumari–Etturavattam Tollway Private Limited, Salaipudhur–Madurai Tollway Private Limited, and Nanguneri–Kanyakumari Tollway Private Limited, filed a batch of writ petitions seeking enforcement of their contractual and statutory rights as toll concessionaires. They alleged that TNSTC had been consistently operating its fleet through tolled highways and toll plazas without payment of tolls, in violation of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 and applicable Ministry of Road Transport and Highways (MoRTH) circulars mandating electronic toll collection via FASTag.

Despite repeated directions and circulars issued between 2017 and 2020 requiring all commercial vehicles, including government-operated buses, to be FASTag-compliant, TNSTC allegedly failed to install valid FASTags or maintain sufficient balances, thereby evading toll charges over an extended period.

The petitioners submitted a memo of calculation before the Court, indicating that total dues, including penalty and interest, amounted to approximately ₹276 crores. Even without penalties, the principal outstanding toll liability exceeded ₹113 crores. The Court noted that, apart from submitting that some payments had been made, TNSTC had failed to present any viable plan to address or discharge the outstanding liability.

The Court observed that the issue was not confined to revenue loss for the petitioners but was closely linked to the upkeep and maintenance of public road infrastructure. The persistent non-payment by state-run corporations, it held, undermined the financial viability of public-private partnerships and impeded infrastructure development. The Court made reference to its prior judgments wherein it had been held that state transport buses are not exempt from tolls and may be barred from access to tolled roads if dues remain unpaid.

In a candid and strong-worded observation, the Court noted that unless an order is passed that will stun the officials, no meaningful attempt will be made to resolve the dispute, which has lingered for years. The Court acknowledged that such a direction may inconvenience the travelling public but justified the order in light of the total failure of compliance on the part of the corporations.

Accordingly, the Court directed the petitioners to prohibit TNSTC buses from accessing the toll plazas under their control, specifically the Kappalur, Etturavattam, Salaipudhur, and Nanguneri toll plazas, effective from July 10, 2025, until a satisfactory resolution is proposed or the dues are cleared.

Following the July 8, 2025 order, the State sought a clarification, and the Court advanced the hearing to July 10, 2025. The State informed that discussions were underway with the petitioners and assured that at least the admitted dues would be paid. The Court accordingly kept its earlier order in abeyance until July 31, 2025.

The ruling affirms that statutory toll obligations apply equally to state-run transport fleets, and sustained non-compliance may warrant operational restrictions, reflecting the court’s commitment to enforcing fiscal discipline and legal accountability in public infrastructure.