Supreme Court upholds decision to keep DND flyway toll free for all

Business Standard

09-05-2025

The Supreme Court on Friday refused to review its decision upholding that Delhi-Noida-Direct (DND) flyway would remain toll free in a respite to lakhs of daily commuters.
A bench of Justices Surya Kant and N Kotiswar Singh dismissed the plea seeking review of the December 20, 2024 verdict on a plea of Noida Toll Bridge Company Ltd (NTBCL), a private firm running the Delhi-Noida-Direct (DND) flyway.
The firm referred to the CAG report relied upon by the apex court and said it had some positive remarks on the company, which the order did not reflect.
The bench told the company's counsel that it had "minted a lot of money".
The top court, however, while referring to another plea of senior NTBCL official Pradeep Puri for deletion of personal remarks against him reportedly made in the verdict on the basis of CAG's findings, said it would reproduce the report.
Puri's counsel said CAG did not make any personal comments against him and the paragraph in the verdict, as a result, could be clarified.
On December 20, last year, the top court upheld the decision of Allahabad High Court making the DND flyway toll-free and castigated the NOIDA authority and the Uttar Pradesh and Delhi governments saying the blatant misuse of power and breach of public trust have profoundly shocked its conscience.
The top court had then dismissed an appeal of NTBCL against the 2016 decision of the high court order asking it to stop collecting toll from commuters.
"NTBCL has recovered the project costs and substantial profits, eliminating any justification for the continued imposition or collection of user fees or tolls," it said.
The top court observed NOIDA overstepped its authority by delegating the power to levy fees to NTBCL through the concession agreement and regulations, exceeding the scope of its powers.
If a governmental action disproportionately favours a private entity at the expense of public welfare, it is liable to be struck down as invalid, it added.
Holding no person or entity could be allowed to make an undue and unjust profit from public property, at the cost of the public at large, the apex court referred to the CAG report which stated that the annual toll income of NTBCL during 2001-2016 was Rs 892.51 crore.
"NTBCL has been making profits for the last 11 years; has no accumulated losses as of March 31, 2016; has paid dividends of Rupees 243.07 crores till March 31, 2016 to its shareholders; and repaid all its debt with interest. NTBCL had thus, by March 31, 2016, recovered the project costs, the maintenance costs, and a significant profit on its initial investment. There is no rhyme or reason for the collection of user fees/tolls to continue," the court said.