A day after the Allahabad High Court directed the Noida Toll Bridge Company Ltd (NTBCL) to stop collecting toll tax on Delhi Noida Direct Flyway , commuters travelling on the stretch expressed satisfaction over the top court’s move.
Sudarshan Saha, who often uses the direct flyway over four times in a day says that he’s happy with the waiver. According to Saha, an average commuter spends more than 30 minutes in queues leading upto the DND toll plaza. With the new order in place, Saha hopes to cut down on his travel time between Delhi and Noida.
Was NTBCL able to recover total cost of Investment?
Similar views were echoed by Pankaj Gupta, who also questioned the continued levy of toll tax on commuters. ‘They have already received returns on the investment and this should have stopped long ago,’ he said.
Put into operation since 2001, the eight-lane connector across the Yamuna was being managed by the Noida Toll Bridge Company Ltd (NTBCL). Beginning at Rs 8, the toll tax at the facility has risen to Rs 28 over the years.
Responding to the charge that NTBCL recovered funds in excess of its original investment, 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.”
Court Verdict Sparks Confusion over DND’s Continued Maintenance
But Wednesday’s verdict also raises important questions on the safety and maintenance of the 9.2 km stretch. Till now the toll company was managing the entire road infrastructure. But the court order now leaves one question unanswered. Who maintains the DND’s streets, lights and road-safety related apparatus?
Moreover, the DND flyway was established under a written agreement, which remains valid till 2031. Although the honorable High Court arrived at the decision in public interest, it now remains to be seen whether common good can trump over rules governing business contracts.
NTBCL Decides to Move SC, as Stocks Fall
Meanwhile markets reacted sharply to Wednesday’s court order, as stocks of the Noida Toll Bridge slipped by over four points, hitting a 10-year-low. NTBCL has now decided to move the Supreme Court, where it is expected to cite legal provisions of the contract to swing the verdict in their favour.
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