India updates Motor Vehicles Rules to restrict services for unpaid tolls
The Government of India has updated the Central Motor Vehicles Rules for 2026 with new provisions aimed at tackling unpaid toll fees on national highways. The move applies to vehicles passing through Electronic Toll Collection (ETC) infrastructure across the country and will affect both private and commercial vehicle owners.
Although most vehicles today are linked to FASTag, toll authorities have noted incidents where cars exit plazas without successful payment. The new rules are intended to address these gaps and ensure that outstanding toll amounts are settled.
The updated framework introduces the concept of an ‘unpaid user fee’ which is tied to several vehicle-related services. If a vehicle has pending toll dues, the authorities can withhold a No Objection Certificate (NOC). Without this certificate, ownership transfer or re-registration in another state cannot proceed.
The same provision applies to Certificates of Fitness for commercial vehicles. A vehicle with pending toll payments will not receive a new certificate or a renewal. It will also block applications for National Permits required for inter-state commercial operation. Form 28, which is used to request an NOC, has been revised as part of the update. It can now be processed partly online although applicants must confirm that their vehicles are free of outstanding challans, taxes or legal issues.
The amendments were earlier shared in draft form in mid-2025 and the final version incorporates feedback from various stakeholders and the public. The changes will also link with the upcoming Multi-Lane Free Flow (MLFF) tolling system. MLFF aims to replace physical toll barriers with digital number plate recognition using dedicated cameras and AI-based processing. The system is intended to streamline toll collection and eventually make roadside toll booths redundant.