Supreme Court Cancels DND Toll Collection Contract, Citing Violations of Public Interest

In a landmark judgment on Friday, the Supreme Court terminated the toll collection contract on the Delhi-Noida-Direct (DND) Flyway, a critical link between south Delhi and Noida. The decision, articulated by Justices Surya Kant and Ujjal Bhuyan, supports the 2016 Allahabad High Court ruling that ordered a halt in toll collection by the Noida Toll Bridge Company Ltd (NTBCL).

The Supreme Court’s decision highlighted the core principle that government policies must prioritize public welfare and should not disproportionately benefit private entities. The ruling pointed out the flaws in the concession agreement between state authorities, Noida, and NTBCL, describing it as “unfair, unjust, and inconsistent with constitutional norms.”

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Justice Kant stressed, “Government procedures and policies must serve the public genuinely and not just be a facade to enrich private pockets.” He noted that when public interest is compromised, it prompts a critical evaluation of whether the government actions were capricious or arbitrary.

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The court heavily criticized the lack of transparency and fairness in the concession process. The agreement, formed between NOIDA, infrastructure giant IL&FS, and NTBCL, lacked competitive bidding or tendering, which the bench found dubious and indicative of preferential treatment.

“The manner in which the DND Flyway contract was allocated to NTBCL, a company that was non-existent at the time of the initial memorandum of understanding in 1992, underscores a significant breach of trust and procedural fairness,” stated the verdict.

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The court elaborated that NTBCL’s justification that no other firm was capable of handling the DND Flyway’s construction at the time was unsubstantiated and self-serving. It also dismissed the claim that IL&FS was the only suitable entity for such a project, labeling the exclusivity as unjustified favoritism.

In its comprehensive 54-page verdict, the bench affirmed that the selection of NTBCL without a transparent and competitive process violated Article 14 of the Constitution, which guarantees equality before the law.

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