**Executive Summary**
The Government of India has notified the *National Highways Fee (Determination of Rates and Collection) (Second Amendment) Rules, 2026*, effective from March 17, 2026. The amendment introduces a technology-driven recovery mechanism for "unpaid user fees" to support the transition to barrier-free tolling. Key features include the issuance of electronic notices (e-notices) and the integration of tolling systems with the VAHAN database to enforce compliance.
**Key Points / Main Content**
**Recovery Mechanism and E-Notices**
* **Definition of Unpaid Fee:** Defined as the toll for a vehicle whose passage is recorded by Electronic Toll Collection (ETC) infrastructure but for which payment has not been received.
* **Rule 14 Implementation:** Establishes a system for issuing e-notices to registered vehicle owners via SMS, email, mobile applications, or a designated online portal.
* **Notice Details:** E-notices will specify vehicle information, the date and location of passage, and the total amount payable.
**System Integration and Enforcement**
* **VAHAN Integration:** The National Electronic Toll Collection (NETC) system will be integrated with the VAHAN database for seamless vehicle identification.
* **Service Restrictions:** If a fee remains unpaid beyond 15 days (and no representation is pending), the debt will be recorded in VAHAN, leading to restrictions on vehicle-related services.
**Fee Structure and Timelines**
* **Standard Penalty:** The fee payable in response to an e-notice is twice the applicable toll amount.
* **Incentive for Early Payment:** If the fee is paid within 72 hours of the e-notice issuance, only the original toll amount is charged.
**Grievance Redressal**
* **Submission Window:** Vehicle owners or drivers can submit a representation through the online portal within 72 hours of receiving an e-notice.
* **Disposal Deadline:** Authorities must examine and dispose of representations within five days; failure to do so results in the lapse of the claim for the unpaid fee.
**Impact Analysis**
**Registered Vehicle Owners and Drivers**
**Impact**
Vehicle owners are now subject to digital enforcement and stricter penalties for non-payment of tolls. While they benefit from a streamlined grievance process, they face doubled fees for non-compliance and potential loss of vehicle-related services if dues are ignored.
**Action Required**
Owners must ensure toll payments are processed successfully. If an e-notice is received, they should pay within 72 hours to avoid penalties or file a representation via the designated portal within the same timeframe if they wish to contest the charge.
**Government and Toll Authorities**
**Impact**
The amendment enhances transparency in toll operations and provides a legal framework for recovering dues in barrier-free systems. It is intended to boost investor confidence and ensure efficient revenue realization through automated identification and enforcement.
**Action Required**
Authorities must integrate the NETC and VAHAN systems and ensure a robust digital infrastructure for issuing e-notices. They must also adhere to the strict five-day deadline for disposing of grievances to maintain valid claims on unpaid fees.
Key Entities Referenced
National Highways Fee (Determination of Rates and Collection) (Second Amendment) Rules, 2026: The specific regulatory amendment introduced to establish a structured recovery mechanism for unpaid user fees and strengthen digital toll enforcement.
Ministry of Road Transport & Highways: The primary government body responsible for notifying the rules and overseeing toll operations on National Highways.
VAHAN database: The national vehicle registry integrated with the tolling system to enable vehicle identification and impose restrictions on services for non-payment of fees.
National Electronic Toll Collection (NETC) system: The digital infrastructure used to record vehicle passage through Electronic Toll Collection (ETC) and facilitate the enforcement of unpaid dues.
Ministry of Road Transport & Highways
National Highways Fee Rules, 2026 Amended to
Strengthen Toll Compliance and Digital
Enforcement
Posted On: 18 MAR 2026 7:15PM by PIB Delhi
Introducing a comprehensive and technology-driven framework to strengthen toll compliance on
National Highways, the Government of India has notified the National Highways Fee (Determination
of Rates and Collection) (Second Amendment) Rules, 2026.
The amendment provides a structured recovery mechanism in cases of unpaid user fee and has been
introduced to strengthen digital enforcement of toll collection, particularly in the context of evolving
barrier-free tolling systems, and to ensure efficient and transparent realisation of user fee on National
Highways. The rules have come into effect from 17th March 2026.
The amendment also modifies the rules to introduce the definition of “unpaid user fee” as the toll
applicable to a vehicle whose passage has been recorded by Electronic Toll Collection (ETC)
infrastructure but where the applicable user fee has not been received.
The structured recovery mechanism for unpaid user fee, notified under Rule 14, includes a technology-
driven Electronic Notice (e-notice) system, wherein electronic notices will be issued to registered vehicle
owners specifying vehicle details, date and location of passage, and the amount payable. These notices
may be served through SMS, email, mobile-based applications, or other electronic means, and will also be
made available on a designated online portal.
The rules further provide for integration of the National Electronic Toll Collection system with the
VAHAN database to enable seamless identification of vehicles and enforcement of unpaid dues.
As per the amendment, the unpaid user fee payable in response to an e-notice shall be twice the applicable
toll amount. However, to encourage timely compliance, if the amount is paid within 72 hours of issuance
of the e-notice, only the original user fee will be payable without any additional charge.
A provision has also been made for grievance redressal. Any aggrieved vehicle owner or driver may
submit a representation through the designated portal within 72 hours of issuance of the e-notice. Such
representation is required to be examined and disposed of within five days, failing which the claim for
unpaid user fee shall lapse.
In cases where the unpaid user fee remains unpaid beyond 15 days and no representation is pending, the
amount will be recorded in the VAHAN system, and appropriate restrictions may be imposed on vehicle-
related services until the dues are cleared.
The amendment will further enhance transparency in toll operations, boost investor confidence, and
provide legal and financial safeguards. This amendment marks an important step towards strengthening
compliance mechanisms and supporting the transition to a modern, efficient, and barrier-free tolling
ecosystem in the country.*****
GDH/HJ
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