 "No toll tax for DND users, orders Allahabad HC")
In a judgement that may bring relief to millions of commuters in the NCR region, the Allahabad High Court on Wednesday, ruled that henceforth no toll tax shall be taken from those using the 9.2-km-long, eight-lane Delhi-Noida Direct (DND) flyway.
A division bench comprising Justices Arun Tandon and Sunita Agarwal passed the order while allowing a public interest litigation filed by the Federation of Noida Residents' Welfare Association.
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".
The high court had on August 8 reserved its judgement on the plea.
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."
It said that the "right to levy and collect user fee from the commuters as conferred upon the Concessionaire under the concession agreement suffers from excessive delegation and is contrary to the provisions the UP Industrial Development Act".
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).
"We are, therefore, more than satisfied that the Concessionaire cannot now recover the user fees from the users/commuters of the Noida Toll Bridge the DND Flyover," the high court said.
In the PIL, the petitioners had submitted that they, upon "being aggrieved by the demand of the user fee made an enquiry and it then transpired that Noida Authority had authorised" Noida Toll Bridge Company - which was a private company - "to impose and realise user fee under a concession agreement" and "given power to increase the toll charges from time to time".
According to the petitioners, the toll charges were initially "Rs 8 per entry of car which was later hiked to Rs 22 and then Rs 25 from 09.02.2012. Similarly, two-wheelers are charged Rs 12 per vehicle."
The court, however, made it clear that "we are not entering into the rights of the contracting parties under the concession agreement. It is open for them to make any agreements which they choose to agree".
"We are only concerned with the rights of users/commuters of Noida Toll Bridge known as DND Flyway who are being illegally taxed in the name of user fee," the high court said.
Meanwhile, Noida Toll Bridge Company Ltd said in a BSE filing that it, in compliance with the judgement of the high court, has stopped collection of user fee, subject to the outcome of its appeal against the verdict before the Supreme Court.
The company is in the process of filing an appeal in the Supreme Court against this judgement. The rights of the company to the DND under the Concession Agreement remain valid and remains asset of the company, it said.
As has been disclosed in the annual reports of the company, the local resident welfare associations (Federation of Noida Resident Welfare Associations-FONRWA) had filed a public interest litigation in the Allahabad High Court challenging the validity of the concession agreement.
"The Honourable High Court of Judicature at Allahabad has pronounced its judgement today at 4 pm. The judgement although upholding the concession agreement has held the two specific provisions relating to levy and collection of fee to be inoperative and has directed the company to stop collecting the user fee thereby making the facility Toll Free," it said.
A division bench comprising Justices Arun Tandon and Sunita Agarwal passed the order while allowing a public interest litigation filed by the Federation of Noida Residents' Welfare Association.
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".
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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."
It said that the "right to levy and collect user fee from the commuters as conferred upon the Concessionaire under the concession agreement suffers from excessive delegation and is contrary to the provisions the UP Industrial Development Act".
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).
"We are, therefore, more than satisfied that the Concessionaire cannot now recover the user fees from the users/commuters of the Noida Toll Bridge the DND Flyover," the high court said.
In the PIL, the petitioners had submitted that they, upon "being aggrieved by the demand of the user fee made an enquiry and it then transpired that Noida Authority had authorised" Noida Toll Bridge Company - which was a private company - "to impose and realise user fee under a concession agreement" and "given power to increase the toll charges from time to time".
According to the petitioners, the toll charges were initially "Rs 8 per entry of car which was later hiked to Rs 22 and then Rs 25 from 09.02.2012. Similarly, two-wheelers are charged Rs 12 per vehicle."
The court, however, made it clear that "we are not entering into the rights of the contracting parties under the concession agreement. It is open for them to make any agreements which they choose to agree".
"We are only concerned with the rights of users/commuters of Noida Toll Bridge known as DND Flyway who are being illegally taxed in the name of user fee," the high court said.
Meanwhile, Noida Toll Bridge Company Ltd said in a BSE filing that it, in compliance with the judgement of the high court, has stopped collection of user fee, subject to the outcome of its appeal against the verdict before the Supreme Court.
The company is in the process of filing an appeal in the Supreme Court against this judgement. The rights of the company to the DND under the Concession Agreement remain valid and remains asset of the company, it said.
As has been disclosed in the annual reports of the company, the local resident welfare associations (Federation of Noida Resident Welfare Associations-FONRWA) had filed a public interest litigation in the Allahabad High Court challenging the validity of the concession agreement.
"The Honourable High Court of Judicature at Allahabad has pronounced its judgement today at 4 pm. The judgement although upholding the concession agreement has held the two specific provisions relating to levy and collection of fee to be inoperative and has directed the company to stop collecting the user fee thereby making the facility Toll Free," it said.