India Amends Motor Vehicle Rules to Enforce Toll Payment Compliance

The Government of India has notified the Central Motor Vehicles (Second Amendment) Rules, 2026, introducing significant changes to vehicle registration and permit procedures to strengthen compliance with user fee payments at National Highway toll plazas.

The amendments, which modify the Central Motor Vehicles Rules, 1989, establish a direct link between the clearance of unpaid toll fees and essential vehicle-related services. Under the new framework, vehicle owners will be unable to obtain No Objection Certificates for ownership transfers or interstate vehicle relocation until all outstanding user fees are settled.

The rules introduce a formal definition of "unpaid user fee," referring to charges recorded by Electronic Toll Collection systems for vehicle passage on National Highway sections where payment has not been received in accordance with the National Highways Act, 1956.

Certificate of Fitness renewals for vehicles will also be contingent upon clearing all pending toll dues. Additionally, commercial vehicles applying for National Permits must demonstrate that no unpaid user fees are outstanding against them.

Form 28, the application document for No Objection Certificates, has been revised to include mandatory disclosure of any pending toll plaza demands. The form will also be available for electronic issuance through designated online portals, promoting digital processing of vehicle documentation.

The amendments follow a consultative process that began with the publication of draft rules on July 11, 2025, through a Gazette Notification. Public feedback and stakeholder suggestions were invited, with draft copies made available on July 14, 2025. The final rules reflect consideration of the responses received during this period.

Officials indicated that the amendments will support the implementation of the Multi-Lane Free Flow system, which is designed to enable barrier-free tolling across the National Highway network. The National Highways Authority of India expects the changes to foster greater transparency and efficiency in technology-driven tolling systems.

The new rules are intended to improve user fee collection mechanisms while supporting the sustained development and maintenance of the country's National Highway infrastructure.