June 7, 2025

 

In a significant legal development affecting road infrastructure financing, the National Highways Authority of India (NHAI) has approached the Supreme Court seeking a stay on the Madras High Court’s recent order that stopped toll collection on the Madurai-Tuticorin highway.

 

 

The Madras High Court had earlier passed an interim order suspending toll collection on the stretch connecting Madurai and Tuticorin, following petitions from local residents and transporters. The petitioners argued that the toll charges were unjustified and disproportionate, citing poor maintenance and alleged discrepancies in the toll agreement.

 

The High Court’s directive effectively halted toll operations, impacting NHAI’s revenue model and the funding mechanism for ongoing maintenance and upgrades of the highway.

 

 

NHAI has contested the High Court’s decision, emphasizing the contractual and regulatory framework under which the toll collection was authorized. The authority contends that the toll charges were fixed based on detailed project reports and contractual terms with concessionaires, ensuring the funds are adequately utilized for highway upkeep and safety improvements.

 

Furthermore, NHAI argued that stopping toll collection disrupts infrastructure financing, potentially delaying future projects and maintenance essential for safe travel and economic growth in the region.

 

This legal battle highlights the challenges faced by government agencies in balancing public concerns and infrastructural financing. Toll collection on national highways remains a critical revenue source for maintenance and development, but public grievances over toll rates and quality of services often lead to judicial scrutiny.

 

The Supreme Court’s intervention in this matter is keenly watched as it may set a precedent on how toll disputes are handled across the country, potentially impacting other highways where toll collection is contested.

 

 

The Supreme Court is expected to hear the NHAI petition soon. Until then, the Madras High Court’s order stands, and toll collection remains suspended on the Madurai-Tuticorin highway.

 

The case underscores the importance of transparent toll agreements and regular audits to maintain public trust and ensure uninterrupted infrastructure funding.