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Hindustan Times
10-05-2025
- Business
- Hindustan Times
You've minted enough: SC rejects plea on reinstating DND toll
The Supreme Court on Friday dismissed a review petition filed by the Noida Toll Bridge Company Limited (NTBCL), reaffirming its December 2024 decision that the Delhi-Noida Direct (DND) Flyway must remain toll-free. The court rejected NTBCL's request for reconsideration with a terse observation: 'You have minted enough.' A bench of Justices Surya Kant and Ujjal Bhuyan heard the review petition in open court and upheld its earlier finding that NTBCL had recovered its project costs, earned significant profits, and was no longer entitled to collect toll from commuters. The company had approached the court challenging the December 20, 2024 verdict, which had upheld the Allahabad high court's 2016 ruling directing the cessation of toll collection. The Supreme Court had then made scathing observations against NTBCL and its director, Pradeep Puri, noting that the company had exaggerated project costs and generated excessive profits at the public's expense. 'This case was an eyeopener for us. You have minted enough. Review is dismissed,' the bench said. The court's 2024 order relied heavily on a report by the Comptroller and Auditor General (CAG), which found that the company had defrauded the public under the pretext of providing infrastructure. 'An exhaustive reading of the CAG Report highlights the extent to which the public has been defrauded,' the court had said. 'The general public has been forced to part with hundreds of crores by IL&FS and NTBCL… with the collusion of officers from two state governments and NOIDA, who turned a blind eye.' Senior advocate Aman Hingorani, appearing for NTBCL, argued during the review that the original judgment failed to record CAG findings favourable to the company. The court, however, declined to revisit the findings in a review proceeding. A separate review plea was filed by Pradeep Puri, a former bureaucrat and NTBCL director, seeking expungement of critical remarks on his role. The court rejected this as well, stating that all findings about his conduct stemmed directly from the CAG report. In its December ruling, the court had remarked: 'Pradeep Puri, designated as the Director of NTBCL, did not perform any substantive function; nevertheless, all expenses associated with his role, including his hefty remuneration, were incorporated into the total project cost.' The CAG audit revealed questionable expenditures included legal fees worth ₹11 crore, travel costs of ₹4 crore, and ₹33 crore spent on restructuring deep discount bonds. NTBCL also incurred ₹72.25 lakh on 'corporate gifts,' including gold coins distributed to employees, drivers, and sub-staff. According to CAG, NTBCL's toll income from 2001 to 2016 stood at ₹892.51 crore. The company made consistent profits, cleared all debts with interest, and paid out ₹243.07 crore in dividends to shareholders. 'NTBCL has thus, by March 31, 2016, recovered the project costs, the maintenance costs, and a significant profit on its initial investment,' the court had observed. 'There is no rhyme or reason for the collection of tolls to continue.' The DND Flyway was developed through a tripartite agreement between NTBCL, Noida, and Infrastructure Leasing and Financial Services Limited (IL&FS). Under the Concession Agreement, NTBCL was granted the right to levy tolls. However, the Allahabad high court, after reviewing the agreement, found its provisions legally untenable and ordered NTBCL to stop collecting tolls. The Supreme Court endorsed this, further holding that Noida had overstepped its authority by delegating toll-levying powers to a private entity. The matter had been brought to court by the Federation of Noida Residents, who challenged NTBCL's continued toll collection. With Friday's ruling, the top court has now shut the door on further toll recovery from commuters on the DND Flyway.
Economic Times
09-05-2025
- Business
- Economic Times
Supreme Court upholds toll-free status for DND Flyway, ending controversy over toll charges
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The DND flyway will remain toll-free, as the Supreme Court of India on Friday dismissed the Noida Toll Bridge Company 's petition seeking a review of its December order that prohibited the company from collecting toll charges on the Delhi-Noida Direct (DND) flyway, a crucial route connecting Delhi and Noida, Uttar DND flyway, which has been operational since 2001, has drastically reduced traffic congestion and travel time between Delhi and Noida. Before the Allahabad High Court decision that halted the collection of these toll charges, commuters were charged Rs 28 for a one-way trip or Rs 56 for a round trip on the the counsel, appearing for the toll firm, on Friday said that the Comptroller and Auditor General (CAG) report relied upon by the apex court had some positive remarks on the company that the SC order did not reflect, a Bench led by Justice Surya Kant dismissed the petition, saying the CAG report was an 'eye opener' and the company had "minted a lot of money".The top court, however, while referring to NTBCL official Pradeep Puri petition seeking deletion of personal remarks against him in the judgement, said it would reproduce the CAG report in this on the development in the SC, NTBCL in its official statement said that it 'would be evaluating further legal options, with a view to continue safeguarding the interest of the company, the flyway, stakeholders and nearly 60000 investors.'On December 20, in a big relief to commuters, the apex court had upheld a 2016 decision by the HC halted the collection of these toll charges, while dismissing the NTBCL's the New Okhla Industrial Development Authority (NOIDA) for allowing a toll company to exploit users indefinitely, the apex court said the contract awarded to NTBCL through a Concession Agreement by state authorities and NOIDA was unfair, unjust and inconsistent with Constitutional norms and NOIDA exceeded its authority by delegating the power to levy fees or impose tolls to the company, 'rendering such delegation invalid.'The Concession Agreement was executed between NTBCL, Noida and the Infrastructure Leasing and Financial Services Limited (IL&FS) in 1997 for the construction of the eight-lane DND flyway, stretching 9.2 km from Noida to Delhi, under the build-own-operate-transfer model. NTBCL, which was promoted by Infrastructure Leasing & Financial Services, had the rights to collect and levy a report from the CAG, the bench noted that NTBCL had already recovered both the construction cost and a fair profit since the flyway opened in 2001. "The sum of Rs 1,136 crore, i.e. the total expenses incurred by NTBCL are based on the statutory accounts from 2001 to March 2016. This sum includes all the unrecovered project costs added before the date of commissioning of the project and the inflated and unnecessary expenditures undertaken by NTBCL such as, travelling expenses, legal fees, extraordinary salaries and bonuses to employees, etc," it said, adding "it seems to us that no person or entity can be allowed to make an undue and unjust profit from public property, at the cost of the public at large."The Federation of Noida Residents Welfare Associations had moved the HC challenging the levy and collection of toll in the name of 'user fee' by NTBCL.
Time of India
09-05-2025
- Business
- Time of India
Supreme Court upholds toll-free status for DND Flyway, ending controversy over toll charges
The DND flyway will remain toll-free, as the Supreme Court of India on Friday dismissed the Noida Toll Bridge Company 's petition seeking a review of its December order that prohibited the company from collecting toll charges on the Delhi-Noida Direct (DND) flyway, a crucial route connecting Delhi and Noida, Uttar Pradesh. #Operation Sindoor India-Pakistan Clash Live Updates| Missiles, shelling, and attacks — here's all that's happening Pakistani Air Force jet shot down in Pathankot by Indian Air Defence: Sources India on high alert: What's shut, who's on leave, and state-wise emergency measures The DND flyway, which has been operational since 2001, has drastically reduced traffic congestion and travel time between Delhi and Noida. Before the Allahabad High Court decision that halted the collection of these toll charges, commuters were charged Rs 28 for a one-way trip or Rs 56 for a round trip on the expressway. While the counsel, appearing for the toll firm, on Friday said that the Comptroller and Auditor General (CAG) report relied upon by the apex court had some positive remarks on the company that the SC order did not reflect, a Bench led by Justice Surya Kant dismissed the petition, saying the CAG report was an 'eye opener' and the company had "minted a lot of money". The top court, however, while referring to NTBCL official Pradeep Puri petition seeking deletion of personal remarks against him in the judgement, said it would reproduce the CAG report in this regard. Reacting on the development in the SC, NTBCL in its official statement said that it 'would be evaluating further legal options, with a view to continue safeguarding the interest of the company, the flyway, stakeholders and nearly 60000 investors.' On December 20, in a big relief to commuters, the apex court had upheld a 2016 decision by the HC halted the collection of these toll charges, while dismissing the NTBCL's appeal. Criticising the New Okhla Industrial Development Authority (NOIDA) for allowing a toll company to exploit users indefinitely, the apex court said the contract awarded to NTBCL through a Concession Agreement by state authorities and NOIDA was unfair, unjust and inconsistent with Constitutional norms and NOIDA exceeded its authority by delegating the power to levy fees or impose tolls to the company, 'rendering such delegation invalid.' The Concession Agreement was executed between NTBCL, Noida and the Infrastructure Leasing and Financial Services Limited (IL&FS) in 1997 for the construction of the eight-lane DND flyway, stretching 9.2 km from Noida to Delhi, under the build-own-operate-transfer model. NTBCL, which was promoted by Infrastructure Leasing & Financial Services, had the rights to collect and levy toll. Citing a report from the CAG, the bench noted that NTBCL had already recovered both the construction cost and a fair profit since the flyway opened in 2001. "The sum of Rs 1,136 crore, i.e. the total expenses incurred by NTBCL are based on the statutory accounts from 2001 to March 2016. This sum includes all the unrecovered project costs added before the date of commissioning of the project and the inflated and unnecessary expenditures undertaken by NTBCL such as, travelling expenses, legal fees, extraordinary salaries and bonuses to employees, etc," it said, adding "it seems to us that no person or entity can be allowed to make an undue and unjust profit from public property, at the cost of the public at large." The Federation of Noida Residents Welfare Associations had moved the HC challenging the levy and collection of toll in the name of 'user fee' by NTBCL.
