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Skip Delhi Toll? MCD's New Rules Could Cost You 5 Times The Tax

The amendments to the Delhi Municipal Corporation (Toll-Tax) By-laws, 2007, were cleared by the MCD House on Thursday and are in line with directions issued by the Supreme Court.

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Key points generated by AI, verified by newsroom
  • MCD approves new toll tax bylaws to curb evasion.
  • Barrier-free system uses RFID, ANPR to detect non-payment.
  • Defaulters face 72-hour deadline, potential vehicle auction.

The Municipal Corporation of Delhi (MCD) has approved amendments to its toll tax bylaws aimed at curbing tax evasion, ahead of the planned rollout of a barrier-free, technology-driven toll collection system at the Capital's entry points.

The revised bylaws introduce measures such as automatic detection of toll and environment compensation charge evasion, digital notices to defaulters and a technology-enabled recovery mechanism, the Indian Express reported.

The amendments to the Delhi Municipal Corporation (Toll-Tax) By-laws, 2007, were cleared by the MCD House on Thursday and are in line with directions issued by the Supreme Court.

Barrier-Free Toll Collection System Planned

In January, the Supreme Court recommended that the civic body install a barrier-free Multi-Lane Free Flow (MLFF) system integrated with Radio-Frequency Identification (RFID) and Automatic Number Plate Recognition (ANPR) technology at all 126 toll collection points by October.

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The objective is to eliminate vehicle stoppages and reduce congestion at Delhi's border entry points.

RFID, ANPR And FASTag To Track Defaulters

Under the proposed system, if a commercial vehicle enters Delhi without paying toll tax, the civic body will be able to use authorised physical, electronic, digital or hybrid mechanisms, including RFID readers, ANPR cameras and FASTag scans, to identify the defaulting vehicle.

If the system detects that the toll amount has not been successfully deducted, the vehicle will be treated as having made a "wrongful passage", following which a notice will be issued to its owner.

72-Hour Deadline To Pay Outstanding Dues

Vehicle owners who receive a notice will have 72 hours to clear the outstanding toll amount.

If payment is not made within the stipulated period, authorities will issue a digital warrant of distress against the defaulter.

Separately, if a designated official intercepts a vehicle at the point of entry or after it has entered Delhi, the owner will have to immediately pay a penalty equal to five times the applicable toll tax, in addition to any unpaid toll and other dues.

Recovery May Include Vehicle Auction

Under the amended bylaws, failure to pay toll, penalties or other dues within the prescribed timeline will empower authorities to initiate recovery proceedings.

These proceedings could include the auction of the vehicle or other property belonging to the defaulter.

Proposal Heads To Delhi Government

Following approval by the MCD House, the amended bylaws will now be sent to the Delhi government for further consideration, according to officials cited in The Indian Express.

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Frequently Asked Questions

What is the main goal of the MCD's new toll tax bylaws?

The new bylaws aim to curb toll tax evasion. They introduce automatic detection, digital notices, and a technology-enabled recovery mechanism to ensure compliance.

How will the barrier-free toll collection system work?

It will use a Multi-Lane Free Flow (MLFF) system with RFID and ANPR technology. This is designed to eliminate vehicle stoppages and reduce congestion at Delhi's entry points.

What are the consequences of toll tax evasion?

A notice is issued with a 72-hour payment deadline. Failure to pay leads to a digital warrant of distress and potential recovery proceedings, including vehicle auction.

What is the penalty for being caught evading toll tax?

If intercepted by an official, the owner must immediately pay a penalty five times the applicable toll tax. This is in addition to the unpaid toll and any other dues.

About the author Sagarika Chakraborty

Sagarika Chakraborty is a Senior Copy Editor at ABP Live English, where she handles business coverage and key developments in general news, while also actively chasing breaking stories. With a foundation in advertising, she transitioned into journalism to craft in-depth stories and explainers on the economy, real estate, and personal finance. She also engages in interviews and podcasts, bringing out expert insights.

For any tips and queries, you can reach out to her at sagarikac@abpnetwork.com.

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