Supreme Court Halts High Court’s Toll Reduction Order on NH-44; NHAI to Charge 75% Toll Rate
The Supreme Court of India has stayed the Jammu & Kashmir and Ladakh High Court’s order which mandated an 80% reduction in toll fees at Lakhanpur and Bann Toll Plazas along National Highway-44, until the construction of the Lakhanpur-Udhampur stretch is completed. The High Court had deemed it unfair to collect toll fees while the road was in poor condition.
National Highway-44 is part of the North-South Corridor, stretching from Srinagar to Kanyakumari. The High Court’s order was issued in response to a Public Interest Litigation that argued the toll should be suspended as much of the highway was under construction, with about 70% of the stretch incomplete. The petitioners referred to specific rules in the National Highways Fee Rules, suggesting tolls should only be collected once the construction is fully completed.
In its ruling, the High Court had noted the deteriorated state of the road and concluded that commuters were not receiving value for the tolls they paid. Consequently, the court directed a reduction in toll charges at Lakhanpur and Bann plazas by 80% of the pre-January 2024 rates, until the highway between Lakhanpur and Udhampur was certified as operational by an independent surveyor. The court also called for a reassessment of toll rates at other plazas and mandated police verification of toll plaza staff.
However, the Supreme Court intervened, issuing an interim order that stayed the High Court’s directive. A bench comprising Justice Abhay Oka and Justice Ujjal Bhuyan ruled that the National Highways Authority of India (NHAI) could continue charging toll fees at 75% of the notified rate. This rule, as per the National Highways Fee (Determination of Rates and Collection) Rules, 2008, applies when road stretches are being upgraded from four lanes to six lanes. The NHAI had already implemented the necessary toll reductions for such stretches under widening projects.
Solicitor General Tushar Mehta, appearing for the NHAI, argued that the High Court had overstepped its authority by ordering such a reduction and requested a stay. The Supreme Court has scheduled the next hearing for May 19, 2025.
In the interim, toll collection will continue at the reduced 75% rate, as per the current rules. The Supreme Court’s order offers temporary relief to the NHAI, allowing them to maintain the toll collection process while the legal proceedings continue.
