The Supreme Court of India recently ruled that the DND (Delhi Noida Direct) Flyway will continue to be toll-free, upholding a 2016 ruling by the Allahabad High Court. The High Court had instructed the Noida Toll Bridge Company (NTBCL) to cease collecting toll charges, citing that the company’s contract had been awarded without a public tender process, which it deemed arbitrary and unjust.
In its judgment, the Supreme Court also criticized the method used for calculating the project cost, highlighting that the formula allowed for indefinite toll collection, which was deemed unconstitutional. The Court further expressed disapproval of the Noida Authority for failing to invite competitive bids before selecting the company to operate the flyway.
NTBCL, with IL&FS as its main promoter holding a significant stake, had contested the High Court’s decision in the Supreme Court. In 2016, the Allahabad High Court had declared that the company could no longer charge tolls, as it had already recouped its expenses, including returns and interest. The court also found the toll recovery formula flawed, noting that even 100 years would not be sufficient to recover the project costs under the existing structure.
Despite the Noida Toll Bridge Company’s appeal, the Supreme Court has upheld the decision, ensuring that the DND flyway remains toll-free.
