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Government Tightens Rules for Barrier-Less Toll Compliance

Why in the News?

The Centre has amended motor vehicle rules, similar to environmental clearance processes, to enforce stricter toll payment discipline ahead of multi-lane free flow (MLFF) tolling rollout, linking unpaid highway tolls with key vehicle-related services such as ownership transfer and permits. This move reflects a growing trend of applying ex post facto regulations across various sectors.

New Rules to Enforce Toll Payment Discipline:

  • The Central Motor Vehicles (Second Amendment) Rules, 2026 mandate that vehicles with unpaid toll dues face restrictions on accessing essential administrative services.
  • Services affected include transfer of vehicle ownership, inter-state transfer clearance, fitness certificate renewal, and national permits for commercial vehicles.
  • The amendments introduce a formal definition of “unpaid user fee”, covering tolls recorded through electronic toll collection (ETC) but not paid.
  • By integrating toll compliance with vehicle databases, the government aims to curb toll evasion and ensure timely fee collection, similar to how environmental impact assessments ensure project compliance.
  • The notification was issued by the Ministry of Road Transport and Highways, reinforcing regulatory oversight on national highways and promoting a pollution-free environment through efficient traffic management.

Enabling Multi-Lane Free Flow (MLFF) Tolling

  • The rule changes are designed to support the nationwide rollout of MLFF tolling, a barrier-less toll collection system.
  • MLFF relies heavily on high compliance levels, as vehicles are charged digitally without stopping at toll plazas, embodying the precautionary principle in traffic management.
  • Currently, MLFF operates only at select toll locations, but the ministry has targeted full national coverage by end-2026.
  • Linking toll payments to vehicle services creates a strong deterrence mechanism against non-payment in a barrier-less system, promoting environmental democracy through transparent and efficient toll collection.
  • Officials argue this reform will improve traffic flow efficiency, reduce congestion, and enhance ease of travel on highways, contributing to a pollution-free environment.

Regulatory and Administrative Changes:

Form 28 (NOC for vehicle transfer) has been revised to require a declaration on pending unpaid toll demands, reflecting evolving environmental jurisprudence in transportation sector regulation.
● Applicants must now disclose details of outstanding user fees, improving transparency and accountability, similar to EIA notification requirements.
● Portions of Form 28 will be issued electronically through a designated online portal, promoting digital governance.
● The amendments align with broader goals of transport sector digitisation, compliance-based regulation, and user-fee rationalisation, drawing parallels with environmental clearance processes.