HC Slams Govt: Full Toll Despite Incomplete 4-Lane NH, Issues Notice to Centre & State

23 Sep HC Slams Govt: Full Toll Despite Incomplete 4-Lane NH, Issues Notice to Centre & State

✎ Toll collection on National Highways is governed by the National Highways Fee (Determination of Rates and Collection) Rules, 2008, and must align with the 'quid pro quo' principle, ensuring that users receive commensurate…

Subject Relevance — Where This Topic Fits

• GS Paper II — Governance, Transparency and Accountability  |  GS Paper III — Infrastructure Development and Public Finance
• Prelims: Toll collection, National Highways Authority of India (NHAI), Public Interest Litigation (PIL), Constitutional provisions under Article 299, BOT (Build-Operate-Transfer) model, High Court jurisdiction under Article 226
• Essay: The balance between infrastructure development and public accountability, Judicial activism in safeguarding citizen rights

Quick Revision: Toll collection on National Highways is governed by the National Highways Fee (Determination of Rates and Collection) Rules, 2008, and must align with the ‘quid pro quo’ principle, ensuring that users receive commensurate infrastructure benefits for the fees paid.

Why is this in the news?

The Himachal Pradesh High Court has taken cognizance of the practice of collecting full toll charges on a segment of National Highway 303/503 (Bhangwar Raniatal to Kangra Bypass (NH-303/503) Package-V(B)) despite the four-lane road being incomplete. The court issued notices to the Union and State governments, highlighting the alleged exploitation of road users by levying tolls without commensurate infrastructure benefits. This case underscores the legal and ethical dimensions of toll collection in India, particularly in the context of public-private partnership (PPP) projects and the role of judicial oversight in ensuring transparency.

Background

• National Highways in India are developed and maintained through a mix of public funding and PPP models, including the Build-Operate-Transfer (BOT) scheme.
• The National Highways Authority of India (NHAI) is the apex body responsible for the development, maintenance, and management of National Highways under the National Highways Act, 1956, and subsequent amendments.
• Toll collection on National Highways is governed by the National Highways Fee (Determination of Rates and Collection) Rules, 2008, which prescribe the conditions under which tolls may be levied.
• Public Interest Litigations (PILs) have increasingly been used to challenge arbitrary toll collection, inadequate infrastructure, and lack of transparency in highway projects.
• The Constitution of India, under Article 299, empowers the Union and State governments to enter into contracts, including those related to infrastructure development.
• Judicial activism, particularly under Article 226 of the Constitution, has played a pivotal role in addressing grievances related to public infrastructure and services.

What is Toll Collection on National Highways?

• Toll collection is a user fee levied on vehicles plying on certain stretches of National Highways to recover the cost of construction, maintenance, and operation of the road infrastructure.
• The rationale for toll collection is to ensure that those who benefit directly from the infrastructure contribute to its upkeep, thereby reducing the burden on general taxpayers.
• Toll plazas are typically set up at intervals along the highway, and the fee is determined based on the type of vehicle, distance traveled, and the nature of the road (e.g., four-lane, six-lane).
• The National Highways Fee (Determination of Rates and Collection) Rules, 2008, lay down the methodology for calculating toll rates, which must be approved by the competent authority (usually NHAI).
• Toll collection is often outsourced to private operators under the BOT model, where the operator recovers costs through toll revenue over a specified concession period.
• The duration of toll collection is determined by the concession agreement, which may extend beyond the completion of the project if the operator’s investment recovery period is not met.
• Challenges arise when tolls are collected despite incomplete or substandard infrastructure, leading to public grievances and legal disputes.
• Judicial intervention, as seen in the Himachal Pradesh High Court case, ensures that toll collection adheres to the principle of ‘quid pro quo’—i.e., the service provided must justify the fee charged.

Key Features

Feature	Significance
Public Interest Litigation (PIL)	Enables citizens to seek judicial intervention in matters of public concern, ensuring accountability of executive actions and adherence to the rule of law.
Judicial Review of Executive Actions	Allows the judiciary to examine the legality and constitutionality of administrative decisions, particularly in cases of alleged malfeasance or violation of public trust.
Toll Collection Mechanism	Highlights the regulatory framework governing toll plazas, including the principles of user-pay and service-delivery parity, as enshrined in the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
Four-Lane Highway Construction	Demonstrates the phased development of national highways under the Bharatmala Pariyojana, emphasizing the need for timely completion of infrastructure projects to ensure equitable service delivery.
High Court’s Suo Motu Powers	Illustrates the judiciary’s proactive role in addressing systemic governance failures, particularly in cases involving public welfare and fiscal justice.

Why it Matters

Economic Governance

• Ensures fiscal discipline by preventing arbitrary extraction of user fees without commensurate service provision, thereby protecting the economic interests of citizens.
• Reinforces the principle of ‘no taxation without representation’ by aligning toll collection with actual infrastructure delivery, preventing revenue leakage and misuse.
• Promotes transparency in public expenditure by subjecting infrastructure projects to judicial scrutiny, thereby enhancing public trust in governance mechanisms.

Legal and Regulatory Framework

• Demonstrates the application of the National Highways Fee (Determination of Rates and Collection) Rules, 2008, which mandates that tolls be levied only for completed and operational stretches of highways.
• Highlights the role of the judiciary in interpreting and enforcing regulatory provisions to curb administrative arbitrariness and ensure compliance with statutory obligations.
• Emphasizes the need for inter-governmental coordination between the Union and State governments in infrastructure development, as toll collection often involves multiple stakeholders.

Public Accountability and Governance

• Underscores the importance of citizen-centric governance, where public funds are utilised efficiently and equitably, with mechanisms for redressal of grievances.
• Illustrates the judiciary’s role as a watchdog in safeguarding public interest, particularly in cases where executive actions may lead to financial exploitation of citizens.
• Reinforces the need for pre-emptive governance, where potential governance failures are identified and addressed before they escalate into larger systemic issues.

Challenges

1. Regulatory Non-Compliance in Toll Collection

• Incomplete infrastructure projects leading to unjustified toll collection, violating the principle of service-delivery parity.
• Lack of real-time monitoring and grievance redressal mechanisms to address discrepancies between toll collection and service provision.
• Absence of a unified regulatory framework to ensure consistency in toll collection practices across different states and highway stretches.

UPSC Link: GS-II: Governance, Transparency & Accountability

2. Inter-Governmental Coordination Gaps

• Delays in the completion of highway projects due to coordination failures between the Union Ministry of Road Transport and Highways (MoRTH) and State Public Works Departments (PWD).
• Inadequate mechanisms for sharing of responsibilities and liabilities between the Centre and States in the execution of infrastructure projects.
• Lack of a dedicated institutional framework to monitor and expedite the completion of highway projects under schemes like Bharatmala Pariyojana.

UPSC Link: GS-II: Federalism, Centre-State Relations

3. Public Trust and Fiscal Justice

• Erosion of public trust in government institutions due to perceived exploitation of citizens through unjustified toll collection.
• Inadequate awareness among citizens regarding their rights and recourse mechanisms in cases of regulatory violations.
• Need for robust grievance redressal mechanisms to ensure that citizens can seek timely redressal for governance failures.

UPSC Link: GS-II: Citizens’ Charters, Grievance Redressal

4. Judicial Overreach vs. Executive Autonomy

• Balancing the judiciary’s proactive role in governance with the need to respect the executive’s autonomy in policy implementation.
• Ensuring that judicial interventions do not lead to delays in infrastructure projects, thereby defeating the purpose of expedited development.
• Clarifying the boundaries of judicial review in cases involving economic governance and public expenditure.

UPSC Link: GS-II: Separation of Powers, Judicial Activism

Challenges — UPSC Perspective

Issue	Concern
Incomplete Highway Stretches	Unjustified toll collection on stretches where infrastructure development is incomplete, violating the principle of service-delivery parity.
Regulatory Arbitrariness	Lack of uniform regulatory mechanisms to ensure that tolls are levied only for completed and operational highway stretches.
Coordination Failures	Delays in project completion due to inadequate coordination between the Union and State governments.
Public Trust Erosion	Perceived exploitation of citizens through unjustified toll collection, leading to erosion of trust in governance institutions.
Lack of Grievance Redressal	Absence of robust mechanisms for citizens to seek redressal for governance failures related to toll collection.

Way Forward

• The Union Ministry of Road Transport and Highways (MoRTH) and the State Public Works Department (PWD) should conduct a joint audit of all toll plazas to ensure compliance with the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
• Establish a real-time monitoring mechanism for highway construction projects to track progress and ensure timely completion of infrastructure stretches.
• Introduce a citizen feedback portal to allow toll users to report discrepancies between toll collection and service provision, with a dedicated grievance redressal cell.
• Strengthen inter-governmental coordination through regular review meetings between the Centre and States to address bottlenecks in infrastructure development.
• Enhance transparency in toll collection by publishing quarterly reports on the utilisation of toll revenue for infrastructure maintenance and development.
• Conduct awareness campaigns to educate citizens about their rights and recourse mechanisms in cases of regulatory violations.
• Explore the feasibility of introducing dynamic toll pricing mechanisms to align toll collection with the actual usage of highway infrastructure.

UPSC Value Addition

Prelims Practice Questions

Q1. Consider the following statements regarding toll collection on national highways in India:
1. Toll collection is permissible only after the completion of the entire road infrastructure including tunnels and bridges.
2. The National Highways Authority of India (NHAI) is empowered to levy tolls under the National Highways Act, 1956.
3. The Union Ministry of Road Transport and Highways is the sole authority responsible for the construction and maintenance of national highways.

How many of the above statements are correct?

1. Only one
2. Only two
3. All three
4. None

Answer: Only two — Statement 1 is incorrect as toll collection may commence once a specified stretch of the highway is operational, even if other components like tunnels or bridges are under construction. Statement 2 is correct as NHAI derives its powers from the National Highways Act, 1956. Statement 3 is incorrect as state governments also play a role in the construction and maintenance of national highways under certain schemes.

Q2. Assertion (A): The High Court can suo motu take cognizance of issues pertaining to public interest, including irregularities in toll collection.

Reason (R): The Constitution of India under Article 226 empowers High Courts to issue writs for enforcement of fundamental rights and for any other purpose.

Options:
A. Both A and R are true, and R is the correct explanation of A.
B. Both A and R are true, but R is not the correct explanation of A.
C. A is true, but R is false.
D. A is false, but R is true.

Answer: ? — Assertion (A) is true as High Courts possess the power to take suo motu cognizance in public interest matters. Reason (R) is also true and correctly explains the legal basis for such action under Article 226 of the Constitution.

Q3. Match the following pairs related to infrastructure governance in India:

Column I (Institution) | Column II (Function)
————————————-|———————————————–
A. National Highways Authority of India | 1. Frames policies for road transport
B. Ministry of Road Transport and Highways | 2. Implements national highway projects
C. State Public Works Department | 3. Maintains state highways and major district roads
D. Border Roads Organisation | 4. Constructs and maintains roads in border areas

1. A-2, B-1, C-3, D-4; A-1, B-2, C-3, D-4; A-4, B-2, C-1, D-3; A-3, B-4, C-2, D-1
2. answer_explain_list_indexes_to_match_pairs_in_order_to_correct_pairing

Answer: A-2, B-1, C-3, D-4; A-1, B-2, C-3, D-4; A-4, B-2, C-1, D-3; A-3, B-4, C-2, D-1 — The correct matching is: A-2 (NHAI implements national highway projects), B-1 (Ministry of Road Transport and Highways frames policies), C-3 (State PWD maintains state highways), D-4 (BRO constructs and maintains roads in border areas).

Mains Practice Question

✍ The collection of tolls on incomplete or partially operational highway stretches raises significant concerns regarding public accountability and constitutional governance. In this context, critically examine the legal and institutional framework governing toll collection on national highways. Also, analyse the role of the judiciary in ensuring compliance with public interest and constitutional principles in such matters. (15 Marks)

Approach: MODEL-ANSWER SKELETON:

1. **Legal Framework Governing Toll Collection**
– National Highways Act, 1956: Powers of NHAI to levy tolls.
– National Highways Fee (Determination of Rates and Collection) Rules, 2008: Criteria for toll collection and operationalisation of stretches.
– Concession Agreements: Contractual obligations between NHAI and concessionaires.
– Supreme Court judgments (e.g., *Union of India v. NHAI*, 2017): Judicial interpretation of toll collection on incomplete stretches.

2. **Constitutional and Governance Principles**
– Article 21 (Right to Life and Personal Liberty): Ensuring fair trade and business practices.
– Article 300A (Right to Property): Protection against arbitrary expropriation.
– Doctrine of Legitimate Expectations: Public’s expectation of service delivery post-toll collection.
– Public Accountability: Role of Comptroller and Auditor General (CAG) and Parliamentary Committees.

3. **Judicial Role and Public Interest Litigation (PIL)**
– Article 226 of the Constitution: High Courts’ power to issue writs and suo motu cognizance.
– Judicial Activism in PILs: Cases like *Ram Jethmalani v. Union of India* (2011) on public interest.
– Balancing Executive and Judicial Functions: Ensuring checks and balances without overreach.

4. **Institutional Mechanisms for Compliance**
– NHAI’s Toll Policy: Conditions for operationalisation of stretches.
– State and Central Government Oversight: Role of Ministries and State PWD.
– Citizen Grievance Redressal: Mechanisms like *Sugamya Bharat Abhiyaan* for accessibility.

5. **Contemporary Challenges and Way Forward**
– Incomplete Infrastructure: Issues like tunnels, bridges, and service roads.
– Transparency in Toll Collection: Use of IT systems (FASTag) and real-time monitoring.
– Policy Recommendations: Mandatory completion of critical stretches before toll operationalisation; stricter penalties for non-compliance.

**Balanced View:**
– Acknowledge the need for infrastructure financing through tolls.
– Highlight the importance of public trust and constitutional morality in governance.
– Conclude with the judiciary’s role as a safeguard against executive excesses while respecting separation of powers.

Source: amarujala.com

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