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HC ordered 80% reduction in Toll charges as unfair to charge Toll on poor roads

Case Law Details

TaxGuru Citation
2025 taxguru.in 1826
Case Name
Sugandha Sawhney Vs Union of India (Jammu & Kashmir High Court)
Date of Judgement/Order
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Sugandha Sawhney Vs Union of India (Jammu & Kashmir High Court)

Conclusion: Charging tolls on bad roads was unfair and ordered an 80% reduction in toll fees at 2 key toll plazas as tolls were meant to provide good-quality roads, and if the roads were damaged, people should not be forced to pay.

Held: Assessee through the medium of this Public Interest Litigation sought a direction to the respondents to exempt the Toll Tax at Lakhanpur Toll Plaza, Kathua; Thandi Khui Toll Plaza and Ban Toll Plaza, Nagrota, Jammu till the National Highway commencing from Pathankot to Udhampur under the project, titled, Delhi-Amritsar-Katra Expressway gets fully operational for smooth utilization of the public. The case was filed by Sugandha Sawhney, who argued that even though NH-44 (Pathankot to Udhampur) was under construction, people were still being charged a full toll. The poor condition of the highway had increased travel time by 3-4 hours, caused extra fuel consumption, and led to vehicle wear and tear. The government’s defended the toll collection, stating that only 32 km of the highway was under construction and the rest was operational with service roads and diversions. They also said that Thandi Khui Toll Plaza was closed on January 26, 2024, and its toll was redistributed to Lakhanpur and Ban Toll Plazas. Following government rules, they argued that toll rates had already been reduced by 25%. It was held that the highway was in very bad condition, making toll collection unfair. Tolls were meant to provide good-quality roads, and if the roads were damaged, people should not be forced to pay. The court also found that several toll plazas were violating the rule that required at least 60 km distance between them and that some were placed strategically to collect more money, particularly from pilgrims traveling to Vaishno Devi. The court pointed out that charging tolls on substandard roads was unjustified and went against the principles of fair service. The Minister explained that highway agencies should not collect tolls if roads were not in good condition or fail to meet quality standards. The Court also found violations of the National Highway Fee Rules, which mandate a minimum distance of 60 km between two toll plazas. It observed that the distance between Sarore and Ban Toll Plaza was only 47 km, making toll collection at these locations a direct violation of the rules. Therefore, toll charges at Lakhanpur and Ban Toll Plazas should be reduced to just 20% of the original rate until the Delhi-Amritsar-Katra Expressway was fully completed. It also ordered that all toll plazas must follow the National Highways Fee Rules, 2008, especially regarding the required 60 km distance between toll plazas.

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