Read the Press Release here
The Government of India has established a structured process for recovering unpaid user fees (toll fees) and launched an e-notice system as notified in the National Highways Fee (Determination of Rates and Collection) (Second Amendment) Rules, 2026, effective from March 2026.
The press release also highlighted the integration of the National Electronic Toll Collection (NETC) system with the VAHAN database to enable vehicle identification, underscoring efforts to enhance digital enforcement and compliance.
The press release also stated that:
Penalty for Non-Payment: If the toll remains unpaid after an e-notice is issued, the fee will be twice the standard amount. However, if paid within 72 hours, only the original amount is due.
Grievance Redressal System: The amendment establishes a grievance redressal mechanism. Vehicle owners or drivers who receive an e-notice may submit a representation through the designated portal within 72 hours. Authorities must address the representation within five days, or the claim for unpaid user fees will be invalidated. This 72‑hour timeframe provides a window for disputing charges and ensures a swift response from authorities, but it also imposes a strict deadline for resolution.
Consequences of Non-Payment Beyond 15 Days: If the user fee is unpaid for more than 15 days and there are no pending representations, the dues will be recorded in the VAHAN system. Vehicle-related services may then be restricted until the outstanding toll is paid.
Separately, amendments under the Central Motor Vehicles (Second Amendment) Rules, 2026, now tie compliance to essential vehicle administration processes. This means that:
- No NOC for Transfer of Ownership: Vehicle owners will not be able to obtain a No Objection Certificate (NOC) — required for selling or transferring a vehicle — unless all unpaid toll dues are settled.
- Fitness Certificate Renewal Blocked: Renewal or issuance of a Certificate of Fitness is similarly contingent on clearing dues, ensuring compliance before a vehicle can be certified roadworthy.
- National Permits for Commercial Vehicles: Pending toll dues can also block the issuance of national permits for commercial vehicles.
- Form 28 Revision: The official NOC application (Form 28) now requires applicants to disclose any pending unpaid toll demands before the vehicle transfer or registration process can proceed.
Legal developments have highlighted concerns about the operational reliability of toll systems. In December 2025, a consumer disputes panel in Chennai ordered the National Highways Authority of India (NHAI) to pay Rs 10,000 in compensation to a commuter after an ETC (Electronic Toll Collection) scanner malfunction at a toll plaza resulted in an erroneous double charge, even though the vehicle’s FASTag had sufficient balance. The panel stated that when electronic toll collection fails, a zero‑transaction receipt must be issued, and no penalty should be imposed.
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