SDG 9: Industry, Innovation and Infrastructure | SDG 11: Sustainable Cities and Communities
Ministry of Road Transport & Highways | National Highways Authority of India (NHAI)
The Government of India has notified the Central Motor Vehicles (Second Amendment) Rules, 2026, introducing stringent measures to strengthen user fee compliance on National Highways. The new rules link the clearance of outstanding toll dues directly to essential vehicle services, effectively preventing vehicle owners from bypassing payment through secondary market transactions or administrative renewals. Under these amendments, a No Objection Certificate (NOC) for the transfer of ownership or inter-state vehicle movement will not be granted until all ‘unpaid user fees’ are settled. Furthermore, the renewal or generation of a Certificate of Fitness and the issuance of National Permits for commercial vehicles are now contingent upon zero outstanding toll liabilities.
Key Regulatory Changes and Enforcement Mechanisms
Definition of ‘Unpaid User Fee’: A new legal definition has been added to refer to fees payable where an Electronic Toll Collection (ETC) system recorded a vehicle’s passage but payment was not received.
Mandatory Disclosure in Form 28: Applicants seeking an NOC must now explicitly disclose any pending toll demands, with the rules also enabling electronic issuance of this form through an online portal.
Barrier-less Tolling Preparation: These amendments serve as a foundational step for the upcoming Multi-Lane Free Flow (MLFF) system, which will allow for seamless, barrier-less tolling across the National Highway network.
Enhanced Data Integration: The system integrates tolling data with the centralized vehicle database, ensuring that any evasion is flagged during routine fitness checks or ownership changes.
What is the ‘Multi-Lane Free Flow (MLFF)’ system and how do the new rules support its implementation? MLFF is an advanced tolling technology that allows vehicles to pass through toll points at highway speeds without stopping at physical barriers. Unlike traditional booths, MLFF uses overhead sensors and cameras to identify vehicles and deduct fees electronically. The new rules are critical for MLFF because, in a barrier-less environment, physical enforcement is impossible at the point of passage. By linking unpaid fees to vehicle fitness and ownership transfers, the government ensures that toll evasion carries a significant administrative cost, thereby safeguarding revenue for the maintenance and development of the highway network.
Policy Relevance
The amendments represent a shift toward an integrated, “digital-first” enforcement model for infrastructure financing.
Revenue Assurance for NHAI: By closing loopholes in user fee collection, the government ensures a steady flow of funds for the National Highway network’s sustained development.
Incentivizing Digital Compliance: The move further pushes vehicle owners toward FASTag and other ETC systems, reducing congestion at remaining physical toll points.
Standardizing Inter-State Logistics: Mandating zero dues for National Permits ensures that commercial carriers maintain high compliance standards across state borders.
Facilitating Seamless Travel: These rules are a prerequisite for removing physical toll plazas entirely, which will significantly reduce travel time and fuel consumption for all highway users.
Relevant Question for Policy Stakeholders: How can the Ministry of Road Transport & Highways ensure that ‘Unpaid User Fee’ disputes are resolved in real-time to prevent legitimate vehicle transfers from being delayed by technical errors in the ETC system?
Follow the full news here: Government of India Amends Central Motor Vehicles Rules