HC refers toll exemption issue to three-member committee

The Bombay High Court today referred the controversial toll exemption issue to a three-member committee appointed by Maharashtra government and asked it to decide the matter by December 31.
The HC was hearing a petition filed by Sion-Panvel Tollway Private Ltd (SPTPL) which had challenged the state government's notification permitting a toll-free drive for light motor vehicles (LMV), including autos, cars, jeeps, taxis and tempos, on the 25-km stretch between Mumbai and Panvel.
A bench, headed by Chief Justice Mohit Shah, allowed SPTPL's challenge to the toll exemption granted by government and referred the matter to the three-member committee comprising secretaries of Finance, Planning and Public Works Department appointed to examine the issue.

The committee has been asked to consider the issue of granting toll exemption and also decide on the compensation amount to be paid by government to the toll-collecting company.
The High Court held that SPTPL was entitled to get compensation and asked the state to give an adhoc amount of Rs 3.85 crores per month to the company till the committee decides the compensation amount.
If any party is aggrieved by the decision of the committee, it can challenge the order in the High court, the bench ruled.

LMVs constitute more than 95 per cent of traffic on the highway and the exemption would "severely impact us, SPTPL argued in the high court.

SPTPL had moved the HC to challenge the May 26 notification for toll waiver citing violation of rights to equality and carry on business. "Such a ban would sound the death knell for the highway and public-private partnership projects that run on build-operate-transfer basis," it said.
The company said it started toll collection only from January and had to pay interest to public sector banks and financial institutions for a Rs 1,300-crore loan. In addition, it had invested Rs 500 crore in the project, it added.