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This is an archived article published on Mar 20, 2025. The information
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# Toll Collection Fraud: NHAI Bans 14 Agencies For Using Fake Software To Collect Toll Illegally; Rs 100 Cr Security Confiscated

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class="mb-6 text-sm lg:text-lg text-gray-500 italic font-extralight">

Employees of contracted agencies were found using fake software to
collect tolls from vehicles without FASTags or with restricted FASTags.
A case was registered and show-cause notices were issued to the
agencies. Along with the legal action, the Ministry of Road Transport
and Highways set up a three-member inquiry committee.

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<figure>
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class="w-full rounded-none lg:rounded-2xl mt-5" loading="eager"
data-fetchpriority="high" decoding="async" width="586" height="330"
alt="The UP STF raided the Atraila Shiv Gulam Toll Plaza in Mirzapur and discovered that illegal toll collection was happening at approximately 42 toll plazas across the country, causing the government a loss of more than Rs 120 crore. Representational image" />
<figcaption aria-hidden="true">The UP STF raided the Atraila Shiv Gulam
Toll Plaza in Mirzapur and discovered that illegal toll collection was
happening at approximately 42 toll plazas across the country, causing
the government a loss of more than Rs 120 crore. Representational
image</figcaption>
</figure>

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-   By <a href="/authors/abhishek-sheoran"
    class="text-red-500 font-semibold hover:underline">Abhishek Sheoran</a>
-   Thu, 20 Mar 2025 11:02 PM (IST)

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-   Source:JND

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As many as 14 toll-contracted agencies in Uttar Pradesh faced action
over illegal toll collection. Based on the report of an inquiry
committee set up by the Ministry of Road Transport and Highways, the
National Highways Authority of India (NHAI) has banned the responsible
agencies for two years and confiscated their nearly Rs 100 crore
security deposit due to violation of contract terms.

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The UP STF raided the Atraila Shiv Gulam Toll Plaza in Mirzapur and
discovered that illegal toll collection was happening at approximately
42 toll plazas across the country, causing the government a loss of more
than Rs 120 crore.

**ALSO READ: <a
href="https://www.thedailyjagran.com/maharashtra/pune-minibus-deaths-driver-confesses-to-plotting-murder-of-firm-employees-over-mistreatment-staged-incident-as-fire-10225096"
target="_blank">Pune Minibus Deaths: Driver Confesses To Plotting Murder
Of Firm Employees Over ‘Mistreatment’, Staged Incident as Fire </a>**

**Fake Software Used For Collection**

Employees of contracted agencies were found using fake software to
collect tolls from vehicles without FASTags or with restricted FASTags.
A case was registered and show-cause notices were issued to the
agencies. Along with the legal action, the Ministry of Road Transport
and Highways set up a three-member inquiry committee.

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**Two-Year Ban Imposed**

The government claims that the report revealed no flaws in the
electronic toll collection (ETC) system, with 98 per cent of toll
collections happening through the ETC system. However, since the
aforementioned toll collection agencies were unable to provide a
satisfactory reply to the show-cause notices, the NHAI took action by
banning them for two years and confiscating their security deposit. The
toll collection work at these plazas will now be handed over to new
agencies. Additionally, the ministry informed Parliament that they are
considering the installation of AI-based audit cameras at major
(high-value) toll plazas to collect accurate data.

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The government also informed Parliament that Rs 12.55 lakh was refunded
in 2024 for incorrect toll collection on national highways. Union
Minister Nitin Gadkari stated that fines of over Rs 2 crore have been
imposed on the concerned agencies for illegal toll collections. The
National Payments Corporation of India reported that there were
incorrect toll collections in 410 crore FASTag transactions, which
accounts for 0.03 per cent of all FASTag transactions.

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**ALSO READ: <a
href="https://www.thedailyjagran.com/maharashtra/nagpur-violence-prime-accused-fahim-khan-five-others-booked-for-sedition-bangladesh-link-under-probe-10225093"
target="_blank">Nagpur Violence: Prime Accused Fahim Khan, Five Others
Booked For Sedition; Bangladesh Link Under Probe </a>**

The minister further explained that if toll agencies are found
collecting incorrect user charges, penalties 30 to 50 times the
additional charge are imposed as per the contract. In some cases, toll
fees were collected even without vehicles travelling on national
highways or expressways. This happens because agencies sometimes
manually create VRN-based transactions and incorrectly enter vehicle
registration numbers (VRN) in the system. Occasionally, multiple
readings by FASTag readers lead to double charges.

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