India Notifies Amendments to Motor Vehicle Rules to Curb Unpaid Toll Dues

The Government of India has notified amendments to the Central Motor Vehicles Rules, 1989, aimed at strengthening enforcement of user fee payments at toll plazas. The revised provisions have been formalised under the Central Motor Vehicles (Second Amendment) Rules, 2026.

According to the government, the changes seek to improve toll compliance, enhance the efficiency of Electronic Toll Collection (ETC), and reduce instances of toll evasion. The updated rules follow a structured consultation process undertaken in 2025.

New Definition and Framework for Unpaid User Fee

The amended rules introduce a specific definition of “unpaid user fee” to clarify compliance obligations. This definition covers cases where a vehicle passes through a National Highway toll section recorded by the ETC system, but the toll has not been paid under the National Highways Act, 1956.

By clearly identifying what constitutes unpaid dues, the government aims to close procedural gaps that have previously allowed non‑payment to go unaddressed. This definition also creates a foundation for linking toll clearance with key regulatory services.

Restrictions On Vehicle‑Related Services for Pending Dues

Under the new provisions, authorities will not issue a No Objection Certificate (NOC) for transfer of vehicle ownership or inter‑state movement if any unpaid toll fees remain outstanding. Renewal or issuance of a Certificate of Fitness for vehicles will also be withheld until all dues are cleared.

Additionally, commercial vehicles applying for a National Permit will be required to have no pending user fee liabilities. These measures are intended to ensure that unpaid tolls are settled before vehicle‑related approvals are granted.

Updated Forms and Digital Processes

Form 28, used for seeking an NOC for vehicle transfer, has been updated to reflect the modified compliance requirements. Applicants must now declare whether any unpaid toll demand is pending and provide relevant details in the application.

To support streamlined processing, the rules also allow electronic issuance of the relevant sections of Form 28 through a designated online portal. This update promotes transparency and ensures that toll compliance is checked before a vehicle is transferred to another jurisdiction.

Alignment With MLFF And Future Tolling Systems

The government has stated that these amendments will facilitate toll collection following the deployment of the Multi‑Lane Free Flow (MLFF) system. MLFF is expected to enable barrier‑less tolling on National Highways, relying on automated systems to record vehicle movement.

Ensuring that unpaid tolls can be enforced through regulatory linkages strengthens the broader technological framework planned for national tolling. These regulatory changes therefore support the transition from booth‑based tolling to seamless electronic tolling across highway networks.

Read More: Centre Releases Draft National Electricity Policy 2026 To Guide Power Sector Transformation.

Conclusion

The amendments to the Central Motor Vehicles Rules, 1989, mark a significant step in improving toll compliance across National Highways. By linking unpaid dues to essential vehicle‑related services and updating documentation requirements, the government has strengthened enforcement mechanisms.

The changes are also aligned with the upcoming MLFF system, reinforcing India’s move towards transparent and technology‑driven tolling. With the updated rules now notified, vehicle owners will be required to ensure the timely settlement of toll liabilities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.