Centre Tightens Motor Vehicle Rules to Enforce Toll Payments on National Highways
New rules bar NOC, fitness renewal and national permits for vehicles with pending toll payments
In a significant move aimed at strengthening compliance with toll payments on National Highways, the Government of India has notified amendments to the Central Motor Vehicles Rules, 1989. The changes, brought into effect through the Central Motor Vehicles (Second Amendment) Rules, 2026, are designed to curb user fee evasion, enhance the efficiency of electronic toll collection systems, and promote greater accountability among vehicle owners.
The amended rules introduce stricter measures by linking the clearance of unpaid toll dues with key vehicle-related services such as ownership transfer, fitness certification, and permit issuance. The move is expected to have far-reaching implications for both private and commercial vehicle owners, particularly those using National Highway networks frequently.
A key feature of the amendment is the introduction of a formal definition of “unpaid user fee.” Under the new provisions, unpaid user fee refers to toll charges payable for the use of a National Highway stretch where a vehicle’s passage has been recorded by the Electronic Toll Collection (ETC) system, but the applicable fee has not been received in accordance with the provisions of the National Highways Act, 1956. This definition provides a clear legal basis for identifying and acting upon pending toll dues captured digitally through FASTag and other ETC mechanisms.
One of the most consequential changes under the new rules is the restriction on issuing a No Objection Certificate (NOC) for vehicle transfer. As per the amended provisions, an NOC for transfer of ownership or for transferring a vehicle from one state to another will not be granted if there is any unpaid user fee linked to the vehicle. This effectively means that vehicle owners must clear all outstanding toll dues before proceeding with ownership or jurisdictional changes.
In addition, the amendments bar the renewal or issuance of a Certificate of Fitness for vehicles with pending toll payments. Since a valid fitness certificate is mandatory for legally operating a vehicle—especially commercial vehicles—this provision is expected to significantly boost compliance. For commercial vehicles applying for a National Permit, the rules now mandate that no unpaid user fee should be pending against the vehicle at the time of application.
To operationalize these changes, corresponding modifications have been made to Form 28, which is the application form for obtaining a No Objection Certificate. Applicants are now required to declare whether any demand for unpaid user fee is pending against the vehicle at any toll plaza, along with relevant details. This declaration adds an additional layer of transparency and accountability to the vehicle transfer process.
In line with the government’s push towards digital governance, the amended rules also provide for the electronic issuance of relevant portions of Form 28 through a designated online portal. Form 28 plays a crucial role in the vehicle transfer process, as it certifies that the vehicle has no pending taxes, challans, or legal issues. The move to digitize this process is expected to reduce paperwork, speed up approvals, and minimize manual intervention.
The amendments are also seen as an important preparatory step for the implementation of the Multi-Lane Free Flow (MLFF) tolling system, which aims to enable barrier-less toll collection on National Highways. As MLFF relies entirely on digital detection and automated fee collection, ensuring robust enforcement mechanisms for unpaid tolls is critical to its success.
The notification of the amended rules follows due consultative process. Draft rules were published in the Gazette on 11 July 2025, inviting suggestions and objections from stakeholders and the general public. Copies of the draft notification were made available on 14 July 2025. After examining the feedback received, the government finalized and notified the amendments.
According to officials, these changes will assist the National Highways Authority of India (NHAI) in strengthening transparent, technology-driven tolling systems. By ensuring higher compliance with user fee payments, the amendments are expected to support the sustained development, operation, and maintenance of the National Highway network across the country, while also promoting fairness among road users.
