Govt tightens highway norms: no permits, RC transfers if toll not paid

/ 2 min read
Summary

India links vehicle transfers, fitness certificates, and permits to unpaid toll dues to enhance highway fee compliance and digital tolling efficiency

Representational Image
Representational Image | Credits: Shutterstock

The union road transport and highways ministry has amended the Central Motor Vehicles Rules, 1989, to strengthen compliance with toll payments on National Highways. The notification of the Central Motor Vehicles (Second Amendment) Rules, 2026 introduces measures aimed at reducing toll evasion, boosting efficiency in Electronic Toll Collection (ETC), and promoting digital processes.

ADVERTISEMENT
Sign up for Fortune India's ad-free experience
Enjoy uninterrupted access to premium content and insights.

A key feature of the amendment is the introduction of a new definition for ‘unpaid user fee’. It applies to vehicles that have passed through toll plazas where ETC systems have recorded the passage, but the applicable fees remain unpaid, as per the National Highways Act, 1956.

Under the revised rules, clearance of unpaid highway user fees is now linked to critical vehicle-related services. A No Objection Certificate (NOC) required for transferring vehicle ownership, including inter-state transfers, will not be issued until all outstanding toll dues are cleared. Similarly, renewal or issuance of a Certificate of Fitness for vehicles will be blocked if any user fees are pending. For commercial vehicles applying for National Permits, clearance of unpaid user fees is now mandatory.

The amendments also update Form 28, which requires applicants to declare any pending toll dues. To encourage digital compliance, relevant portions of Form 28 can now be submitted electronically through the designated online portal. This change is expected to support the upcoming Multi-Lane Free Flow (MLFF) system, which will enable barrier-less tolling across the National Highway network.

The Ministry had released draft rules on 11 July 2025, inviting suggestions from stakeholders and the public. Following a review of the feedback, the final amendments were notified in the Gazette.

According to officials, these changes aim to foster a transparent, technology-driven tolling system that ensures sustained development and maintenance of National Highways, while encouraging motorists to comply with user fee obligations.

Explore the world of business like never before with the Fortune India app. From breaking news to in-depth features, experience it all in one place. Download Now