NEW DELHI: In a big relief for hundreds of daily commuters between Noida and Delhi, the Supreme Court on Friday affirmed a 2016 decision by the Allahabad High Court, which halted the collection of toll charges on the Delhi-Noida Direct (DND) flyway, a vital route connecting the National capital with the satellite town in Uttar Pradesh.
Supreme Court Ends Toll Charges on DND Flyway: Big Relief for Delhi-Noida Commuters
A bench of Justices Surya Kant and Ujjal Bhuyan said the company had already recovered both the construction cost and a fair profit since the flyway opened in 2001.
"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 bench said.
DND Flyway Now Toll-Free: SC Affirms Allahabad HC Verdict Against NTBCL
The court dismissed the Noida Toll Bridge Company Ltd’s (NTBCL) appeal against the HC order, finding no infirmity in it.
The High Court's judgment had come on a plea by the Federation of Noida Residents Welfare Associations which challenged the levy and collection of toll in the name of 'user fee' by NTBCL.
The apex court came down heavily upon the New Okhla Industrial Development Authority (NOIDA) for allowing a toll company to exploit users indefinitely, observing that when a state engages in public work, it must be free of arbitrariness.
In its findings, rhe bench said the contract awarded to NTBCL through a concession agreement by state authorities and NOIDA was "unfair, unjust and inconsistent with constitutional norms".
"NOIDA exceeded its authority by delegating the power to levy fees or impose tolls to the company. There was no tender from other interested companies and no competitive bidding was done,” the bench also noted.
The court also said that Noida overstepped its authority by delegating powers to NTBCL to collect toll, or levy user fees, and this was alien to the terms of the concession agreement.
The DND flyway, operational since 2001 has drastically reduced traffic congestion and travel time between Delhi and Noida stretch of 9.2 km. The commuters were charged Rs 28 for a one-way trip or Rs 56 for a round trip on the expressway.
Perusing the clauses in the concession agreement, the court noted it contravened public policy and was, therefore, liable to be severed from the agreement.
“NTBCL has recovered the project costs and substantial profits, eliminating any justification for the continued imposition or collection of user fees or tolls,” the bench noted.
Relying upon the Comptroller and Auditor General's report, the bench found that the annual toll income of NTBCL during 2001-2016 was Rs 892.51 crore and the company had been making profits for the last 11 years and had not accumulated any losses as of March 31, 2016.
"It had paid dividends of Rs 243.07 crore 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 bench said.
The court also 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.
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 under the build-own-operate-transfer model.
