Vehicle Transfers Hit if Toll Dues Unpaid
No NOC, Fitness or Permit Without Toll Clearance
New Delhi: Vehicle owners with pending toll dues on National Highways will no longer be able to access key transport-related services such as ownership transfer, fitness certificate renewal and national permits, following amendments notified by the Government of India to tighten compliance with user fee payments.
The changes have been introduced through the Central Motor Vehicles (Second Amendment) Rules, 2026, which amend the Central Motor Vehicles Rules, 1989. The government said the objective is to improve compliance in toll payments, enhance the efficiency of Electronic Toll Collection (ETC) systems and discourage user fee evasion on National Highways.
A central feature of the amendments is the introduction of a formal definition of “unpaid user fee”. Under the revised rules, an unpaid user fee refers to toll charges payable for the use of a National Highway section where the ETC system has recorded the passage of a vehicle, but the applicable fee has not been successfully received in accordance with the National Highways Act, 1956. This includes cases arising from insufficient balance, failed electronic transactions or other payment issues recorded by the system.
The amended framework directly links the clearance of such unpaid toll dues with essential vehicle services. Authorities will not issue a No Objection Certificate (NOC) for the transfer of vehicle ownership or for the transfer of a vehicle from one State to another unless all outstanding user fee dues have been cleared. Similarly, the renewal or issuance of a Certificate of Fitness for a vehicle will not be permitted if any unpaid toll amount is pending. In the case of commercial vehicles, the rules make it mandatory that there must be no outstanding user fee liability for the grant of a National Permit.
To support enforcement, corresponding changes have been made to Form 28, which is used to apply for an NOC. Applicants will now be required to disclose whether any demand for an unpaid user fee is pending against the vehicle, along with relevant details. The amended rules also promote digitalisation by enabling the electronic issuance of relevant portions of Form 28 through the designated online portal.
Form 28 is a key document in the vehicle transfer process, certifying that the vehicle has no outstanding taxes, challans or legal issues. By mandating disclosure of toll dues, the government has effectively placed unpaid user fees on par with other statutory liabilities linked to vehicle ownership and movement.
The notification clarified that construction and demolition project sites or other entities that have been issued specific closure orders due to violations or non-compliance with statutory directions, rules or guidelines will not be permitted to resume operations unless explicit approval is granted by the competent authority.
The government said the amendments will also facilitate more effective user fee collection with the implementation of the Multi-Lane Free Flow (MLFF) system, which aims to introduce barrier-less tolling across the National Highway network. Linking toll compliance to vehicle services is expected to support smoother adoption of advanced tolling technology.
The changes were finalised after a consultative process. Draft rules were published through a Gazette notification on July 11, 2025, and made available to the public on July 14, 2025, inviting feedback from stakeholders and the general public. After examining the suggestions received, the government notified the final amendments.
According to the notification, the revised rules will assist the National Highways Authority of India (NHAI) in building a transparent, technology-driven tolling system and ensure sustained development and maintenance of the National Highway network.
For vehicle owners, the government has advised regular monitoring of toll transactions and ensuring adequate balance in FASTag or other ETC-linked accounts. Clearing any unpaid toll dues in time will be essential to avoid delays in ownership transfers, fitness renewals or permit applications under the new regime.
– global bihari bureau
