You've minted enough: SC rejects plea on reinstating DND toll
A bench of Justices Surya Kant and Ujjal Bhuyan heard the review petition in open court and upheld its earlier finding that NTBCL had recovered its project costs, earned significant profits, and was no longer entitled to collect toll from commuters.
The company had approached the court challenging the December 20, 2024 verdict, which had upheld the Allahabad high court's 2016 ruling directing the cessation of toll collection. The Supreme Court had then made scathing observations against NTBCL and its director, Pradeep Puri, noting that the company had exaggerated project costs and generated excessive profits at the public's expense.
'This case was an eyeopener for us. You have minted enough. Review is dismissed,' the bench said.
The court's 2024 order relied heavily on a report by the Comptroller and Auditor General (CAG), which found that the company had defrauded the public under the pretext of providing infrastructure. 'An exhaustive reading of the CAG Report highlights the extent to which the public has been defrauded,' the court had said. 'The general public has been forced to part with hundreds of crores by IL&FS and NTBCL… with the collusion of officers from two state governments and NOIDA, who turned a blind eye.'
Senior advocate Aman Hingorani, appearing for NTBCL, argued during the review that the original judgment failed to record CAG findings favourable to the company. The court, however, declined to revisit the findings in a review proceeding.
A separate review plea was filed by Pradeep Puri, a former bureaucrat and NTBCL director, seeking expungement of critical remarks on his role. The court rejected this as well, stating that all findings about his conduct stemmed directly from the CAG report.
In its December ruling, the court had remarked: 'Pradeep Puri, designated as the Director of NTBCL, did not perform any substantive function; nevertheless, all expenses associated with his role, including his hefty remuneration, were incorporated into the total project cost.'
The CAG audit revealed questionable expenditures included legal fees worth ₹11 crore, travel costs of ₹4 crore, and ₹33 crore spent on restructuring deep discount bonds. NTBCL also incurred ₹72.25 lakh on 'corporate gifts,' including gold coins distributed to employees, drivers, and sub-staff.
According to CAG, NTBCL's toll income from 2001 to 2016 stood at ₹892.51 crore. The company made consistent profits, cleared all debts with interest, and paid out ₹243.07 crore in dividends to shareholders. 'NTBCL has thus, by March 31, 2016, recovered the project costs, the maintenance costs, and a significant profit on its initial investment,' the court had observed. 'There is no rhyme or reason for the collection of tolls to continue.'
The DND Flyway was developed through a tripartite agreement between NTBCL, Noida, and Infrastructure Leasing and Financial Services Limited (IL&FS). Under the Concession Agreement, NTBCL was granted the right to levy tolls. However, the Allahabad high court, after reviewing the agreement, found its provisions legally untenable and ordered NTBCL to stop collecting tolls. The Supreme Court endorsed this, further holding that Noida had overstepped its authority by delegating toll-levying powers to a private entity.
The matter had been brought to court by the Federation of Noida Residents, who challenged NTBCL's continued toll collection. With Friday's ruling, the top court has now shut the door on further toll recovery from commuters on the DND Flyway.
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