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Noida Toll Bridge Share Price Hits 5% Lower Circuit After SC Orders Not to Collect Toll on DND Flyway

Updated on: Dec 20, 2024, 2:06 PM IST
Noida Toll Bridge Co. loses toll rights as Supreme Court upholds Allahabad HC decision. Shares drop 5% to ₹18.52 on December 20.
Noida Toll Bridge Share Price Hits 5% Lower Circuit After SC Orders Not to Collect Toll on DND Flyway
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The Supreme Court of India has ruled that commuters on the Noida DND Flyway will continue to travel toll-free, dismissing an appeal by the Noida Toll Bridge Corporation Limited (NTBCL).

The court upheld a previous order from the Allahabad High Court, which had directed NTBCL to cease toll collection on the Delhi-Noida Direct (DND) flyway. The apex court ruled that the Noida Authority’s decision to delegate toll collection to NTBCL was unjust, unfair, and arbitrary.

Following the Supreme Court ruling, Noida Toll Bridge Company share price plunged 5%, trading at ₹18.52 on the NSE at 11:54 AM on December 20.

What Did The Supreme Court Say?

A bench comprising Justices Surya Kant and Ujjal Bhuyan stated that the agreement allowing NTBCL to collect tolls was invalid and there was no justification for continuing the user fee collection.

The bench sharply criticised the Noida Authority for awarding the contract to a private company without prior experience, accusing them of unjustly enriching NTBCL at the public’s expense. The ruling emphasised that the Noida Authority had overstepped its legal authority by delegating such powers to NTBCL, resulting in significant financial loss to the general public.

High Court’s Earlier Ruling Supported by the Supreme Court

The Allahabad High Court had first ruled in October 2016 that toll collection on the DND flyway should cease, following a public interest litigation (PIL) filed by the Federation of Noida Residents’ Welfare Association.

In its over 100-page judgment, the High Court found that the user fee imposed by NTBCL was not legally supported by the provisions in the concession agreement or the UP Industrial Development Act.

It noted that the agreement between the Noida Authority and NTBCL suffered from excessive delegation and violated legal guidelines for public infrastructure projects.

Court’s Criticism of Delegation and Public Losses

The Supreme Court echoed the High Court’s concerns, particularly criticising the delegation of toll collection to NTBCL, a private firm with no prior experience in managing such projects. The bench stressed that this arrangement had led to the unlawful collection of toll fees from the public, resulting in unjust financial gains for NTBCL.

The judgment marks a significant legal victory for commuters, ensuring that the DND Flyway remains toll-free as originally intended by the High Court’s decision.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 20, 2024, 1:16 PM IST

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