SC allows MCD's toll collector to exit

The Supreme Court today allowed SMYR Consortium LLP, which levies toll on behalf of MCD and court-imposed green cess from commercial vehicles entering Delhi, to exit from its contract with the civic body.
SMYR Consortium LLP contended that the collection of the court-imposed Environment Compensation Charge (ECC) from commercial vehicles, along with the civic toll, had adversely affected its business.
A bench of Chief Justice T S Thakur and Justices A K Sikri and R Banumathi permitted the Consortium to exit on the expiry of its contract from the morning of February one.
During the hearing, the Consortium said the imposition of the ECC and the subsequent 100 per cent hike on it had resulted in nearly 35 per cent fall in the vehicles entering the national capital and had adversely impacted its toll collection and business interest.

The bench allowed the exit with a direction to the consortium to continue with its operations for next three weeks and pay the municipal body a contractual sum of Rs 10.5 crore every week.
It further said that any default in the payment of contracted toll amount of Rs 10.5 crore would result in the forfeiture of consortium's bank guarantees.

The court asked Additional Solicitor General Pinki Anand, appearing for South Delhi Municipal Corporation, to put in place an alternate mechanism to collect the toll and the ECC.
The apex court, on October 9, 2015, had imposed ECC of Rs 700 on light commercial vehicles with two axles and of Rs 1300 on the commercial vehicles with three and four axles.

Then by its December 16 order, it had doubled the ECC to be levied on commercial vehicles entering Delhi.