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NICE Ltd in the dock for hiking toll without government consent 

While the agreement permits NICE Ltd to raise tolls if the department does not respond within 30 days, PWD officials stated they had not received any communication from the company.
Last Updated : 04 August 2024, 21:01 IST

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Bengaluru: The Public Works Department (PWD) is considering seeking legal advice on its next steps after Nandi Infrastructure Corridor Enterprises Ltd (NICE) raised toll rates on NICE Road without obtaining its consent.

The department noted that the private firm, under scrutiny for violating the framework agreement, neither notified it of its intent to hike toll rates nor shared the revised tariff.

Starting July 1, NICE Ltd increased toll fees for the peripheral and link roads, citing the toll concession agreement it signed with the Karnataka government in September 2020.

While the agreement permits NICE Ltd to raise tolls if the department does not respond within 30 days, PWD officials stated they had not received any communication from the company.

The toll increase affects cars across seven roads maintained by NICE Ltd, spanning 44 kilometres.

For example, the toll on the 9-kilometre Hosur Road-Bannerghatta Road stretch rose by Rs 10, reaching Rs 60. Meanwhile, the toll on the 6.79-kilometre section between Bannerghatta Road and Kanakapura Road increased from Rs 40 to Rs 45. There is no increase for two-wheelers.

Prior to the hike, NICE Road operators were generating nearly Rs 1.5 crore daily from toll collections.

The revision comes amid an ongoing case in the Karnataka High Court, where NICE Ltd has challenged a default notice issued by the PWD in February 2016. The department had accused the firm of breaching the framework agreement by failing to meet technical specifications in road construction.

Despite the case pending before the court, the government has not taken action against NICE Ltd, even though the company has raised tolls multiple times over the past eight years.

Representatives of NICE Ltd were unavailable for comment.

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Published 04 August 2024, 21:01 IST

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