India Enforces New Toll Rules to Boost Highway Compliance
The Government of India has rolled out the ‘Central Motor Vehicles (Second Amendment) Rules, 2026’, aimed at enhancing compliance with user fee payments at toll plazas on National Highways. This legislative update marks a significant step toward improving the efficiency of Electronic Toll Collection (ETC) systems while discouraging evasion of toll fees across the nation.
One of the key changes introduced in these amendments is the clear definition of ‘unpaid user fee’. This newly defined term refers to any user fee that is due for a section of National Highway, where the ETC system has recorded the vehicle’s passage, but payment has not been made as stipulated under the National Highways Act, 1956.
Linking User Fees to Vehicle Services
The amended regulations establish a direct connection between the payment of unpaid user fees and various vehicle-related services. Notably, a No Objection Certificate (NOC) required for transferring vehicle ownership or moving a vehicle from one state to another will not be issued if there are outstanding toll fees. Additionally, vehicles will be unable to renew their Certificate of Fitness unless all unpaid user fees are settled. Commercial vehicles applying for a National Permit are also required to clear any unpaid toll fees before their applications can be processed.
Modernizing Vehicle Ownership Transfers
Moreover, changes have been made to ‘Form 28’, which is crucial for vehicle ownership transfers. Applicants must now confirm whether there are any pending demands for unpaid user fees associated with their vehicle. To streamline this process, parts of ‘Form 28’ can now be electronically issued through an official online portal, promoting a more digital approach to toll compliance. This form serves as essential documentation ensuring that the vehicle has no outstanding taxes, fines, or legal issues when changing ownership.
Feedback and Implementation
The amendments follow the publication of draft rules on July 11, 2025, which prompted public and stakeholder feedback. After considering the responses, the government finalized the rules, making them official. This proactive approach is aimed at fostering transparency and leveraging technology in tolling practices, ultimately supporting consistent development and maintenance of the National Highway network across India.
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