Delhi HC junks plea after NHAI keeps toll circular in abeyance

The National Highways Authority of India (NHAI) informed the Delhi High Court that its recent circular on toll collection will remain in abeyance until the objections raised by highway operators were heard and adjudicated.

The statement was made by NHAI’s Standing Counsel Santosh Kumar before Justice Sachin Datta, who recorded the submission and disposed of the plea filed by the Highway Operators Association (India) [HOAI] and Roadstar Infra Investment Trust (RIIT).

The petitioners had challenged the NHAI’s policy circular dated September 13, which revised the “linking factor” used to convert Wholesale Price Index (WPI) data between different base years.

The “linking factor” is a multiplier employed to maintain continuity in time series data on the WPI when the base year changes, ensuring comparability between the old and new series.

On a previous occasion, the High Court had directed the NHAI not to take coercive steps against concessionaires under the impugned circular.

Appearing for the HOAI, Senior Advocate Gopal Subramanium contended that the authority had arbitrarily reduced the linking factor without adequate justification. Senior Advocate Rajiv Nayar, representing RIIT, argued that the NHAI implemented the change without issuing any prior notice to the concessionaires, thereby violating principles of fairness and transparency.

The petitioners maintained that the NHAI’s move to discard the agreed linking factor of 1.641, consistently applied for the past seven years to convert WPI data from the 2011-12 base year to the earlier 2004-05 series, was arbitrary and unsupported by any rational basis. They further contended that the revision marked a complete departure from the methodology adopted under the 2018 circular.

With the NHAI agreeing to hold its September 13 circular in abeyance, pending a detailed hearing on the operators’ objections, the matter was disposed of by the court.