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Supreme Court says DND flyway to remain toll free, asks CAG to submit cost report

Supreme Court says DND flyway to remain toll free, asks CAG to submit cost report

The PIL, which was filed in 2012, had challenged the levy and collection of toll in the name of user fee by Noida Toll Bridge Company.

Picture for representational purpose. Picture for representational purpose.

The Supreme Court on Friday refused to stay an Allahabad High Court order making 9.2-km-long, eight-lane Delhi-Noida Direct (DND) flyway toll-free.

The apex court also asked Comptroller Auditor General of India to verify the cost of DND flyway project and submit a report in four weeks.

On October 26, 2016, the Allahabad High court in response to a PIL filed in 2012 ruled that henceforth no toll tax shall be taken from those using the 9.2-km-long, eight-lane Delhi-Noida Direct (DND) flyway.

The PIL, which was filed in 2012, had challenged the levy and collection of toll in the name of user fee by Noida Toll Bridge Company.

In a more than 100-page judgement, the court held, the user fee which is being levied/realised is not supported by the legal provisions relied upon by the Concessionaire (Noida Toll Bridge Company), Infrastructure Leaning and Financial Services (promoter and developer of the project) and the Noida Authority.

The court noted that the Concessionaire, according to their own financial statements, has recovered Rs 810.18 crore (approx) from toll income from the date of commencement of the project till 31.03.2014 and after deduction of operation and maintenance expenses and corporate income tax, the surplus was Rs 578.80 crore (computed before interest, depreciation, and lease rental received by the Concessionaire).

They have further realised user fee/toll two-and-a-half years thereafter between 01.04.2014 and 30.09.2016 which, as per the collection of user fee in the year 2013-14 would work out to an additional sum of Rs 300 crore (approx).