The Bombay High Court on Wednesday took up the Maharashtra State Road Development Corporation (MSRDC) over the paying of toll charges on the Mumbai-Pune Expressway. “Our concern is how many years will you collect toll. Have you not recovered the construction cost?” the bench consisting of Chief Justice Dipankar Datta and Justice Girish Kulkarni questioned.
The bench was hearing a public interest litigation (PIL) filed by four activists in 2020 asking the court to deem the toll collection on the expressway since August 2019 illegal. The PIL said that the Motor Vehicle Tax Act, 1958 provides the government with the power to recover capital outlay and toll collection expenses.
The petition added that toll collection rights were provided for a period of 15 years between August 2004 and August 10, 2019. The rights were awarded for an upfront payment of Rs 918 crores to Mhaiskar Infrastructure Pvt Ltd with expected revenue of around Rs 4,330 crores.
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The petitioners said that the actual revenue generated as of July 31, 2019, was Rs 6,773 crores which is an excess of Rs 2,443 crores. It is claimed that this excess amount was retained by Mhaiskar. Hence, the petitioners say, collecting toll on the Expressway since August 10, 2019, should be deemed illegal.
The counsel for MSRDC, Advocate Prashant Chavan countered by arguing that the agency has the right to levy toll in order to recover capital outlay which also includes construction cost and expenditure towards expansion, maintenance, and outstanding amounts. Chavan went on to say that MSRDC will continue to collect toll on the Mumbai-Pune Expressway until 2030.
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After carefully observing both sides of the argument, Justice Kulkarni said, “If you are traveling from Mumbai to Kolhapur you are paying a toll. How much money people are spending only on toll! Is it justified? It’s the duty of the government to provide good roads.”
“Whatever is being collected, is it commensurate with what is collected by way of taxes?” the bench asked. The bench allowed the MSRDC time until the next hearing on March 10 to file a detailed response.
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