The Supreme Court today rejected the plea of the Noida Toll Bridge Company Limited (NTBCL) to impose tolls on the commuters of the Delhi Noida Direct (DND) flyway. A bench comprising Justice Surya Kant and Justice Ujjal Bhuyan rejected the company’s appeal against the Allahabad High Court’s 2016 judgment which struck down the concessionaire agreement.

Concurring with the High Court’s findings, the Apex Court ruled that the contract awarded to the NTBCL for the DND flyway was unjust, unfair and arbitrary, declaring that the delegation of power to NTBCL to levy a toll fee was illegal. The top court ruled that the New Okhla Industrial Development Authority (NOIDA) of Uttar Pradesh overstepped its authority by delegating its power to levy toll on the company and that there was unjust enrichment of the company at the cost of the public.

The Court noted that there was no competitive bidding during the process of awarding the DND flyway agreement. Hence, the award of the agreement to the NTBCL violated Article 14 of the Constitution.

The court also stated that the agreement’s language effectively ensured perpetual toll collection, enriching NTBCL at the public’s expense.

Addressing broader concerns, the top court held that judicial review of government policies is permissible in cases involving public funds. The bench said, when the state engages in public works, it must act without arbitrariness.