Unpaid highway toll could crash your plan to sell a vehicle: Here is how

Amendments to motor vehicle rules link toll clearance to ownership transfers and fitness certificates to curb fee evasion

The government has announced rules that bar people from transferring ownership of vehicles, moving them across states, or renewing fitness certificates if they have not paid highway toll.

 

Changes to Central Motor Vehicles Rules, 1989, aim to improve compliance with electronic toll collection systems while discouraging evasion.

 

What counts as an unpaid toll fee

 

The amended rules formally define an “unpaid user fee”. It is a situation where a vehicle passes through a National Highway toll plaza and the electronic toll collection system records the passage, but the toll is not received as required under the National Highways Act, 1956.

 

 

In practical terms, this could happen due to insufficient balance in a FASTag-linked account or technical issues that are not subsequently resolved.  ALSO READ | Unpaid highway tolls to block fitness certificate, NOC for vehicles

 

Why unpaid tolls can now block key services

 

The most significant impact for vehicle owners is the direct link between toll clearance and routine vehicle documentation.

 

If a vehicle has any unpaid National Highway toll dues:

 

• A no objection certificate (NOC) for ownership transfer will not be issued 
• An NOC for inter-state vehicle transfer will also be denied 
• Fitness certificates will not be issued or renewed 
• National permits for commercial vehicles will not be granted

 

An NOC is mandatory if a private vehicle is moved to another state for more than three months, making toll compliance critical for owners relocating or selling vehicles across state borders.

 

Changes to Form 28 explained

 

The amendments also update Form 28, which is the application used to obtain an NOC. Applicants must now disclose whether any unpaid toll demand is pending against the vehicle, along with relevant details.

 

To streamline the process, the rules allow parts of Form 28 to be issued electronically through designated government portals, reducing paperwork and manual verification.

 

What this means for vehicle owners

 

For individual motorists, the new rules mean toll payments are no longer limited to highway use alone. Unpaid dues can now surface later when selling a vehicle, renewing documents, or relocating.

 

For the government and the National Highways Authority of India (NHAI), the move supports the rollout of Multi-Lane Free Flow tolling, which will enable barrier-less toll collection across highways.

 

The amendments follow a public consultation process initiated in July 2025 and are intended to strengthen technology-driven toll systems while ensuring steady funding for highway maintenance and expansion.