The government has taken a major step towards implementing a barrier-free tolling system. Now, it is mandatory to pay all outstanding tolls before selling any vehicle or obtaining a fitness certificate.
If any toll tax is unpaid, you cannot get a NOC (No Objection Certificate) to sell your vehicle, nor can you receive a fitness certificate. Only after full payment of the toll will these documents be issued.
Amended Central Motor Vehicles Rules, 2026
The Ministry of Road Transport and Highways has notified amendments to the Central Motor Vehicles Rules, 2026. The main goal is to ensure all pending toll tax at toll plazas is collected.
The ministry stated, “These amendments aim to improve compliance, enhance electronic toll collection efficiency, and prevent toll evasion on national highways.”
These rules will support the Multi-Lane Free Flow (MLFF) system, which allows toll collection without physical barriers on national highways.
Toll Payment Rules for Commercial Vehicles
For commercial vehicles, the rules are stricter. If a commercial vehicle owner has unpaid tolls:
They cannot renew or apply for a new permit.
They cannot sell the vehicle.
They cannot renew the fitness certificate.
The amended rules also introduce a new term called ‘non-utilisation fee’, which applies when a vehicle is recorded on a national highway via electronic toll collection, but the toll fee under the National Highways Act, 1956, has not been paid.
Changes in Form 28
Form 28 has also been updated. Now, vehicle owners must disclose any pending toll dues at all toll plazas while applying for Form 28.
To make the process easier, the rules allow electronic issuance of Form 28 through a designated online portal.
Form 28 is essential when transferring a vehicle to another person after sale, as it certifies that there are no pending taxes, challans, or legal issues on the vehicle.
Background and Implementation
These amendments were made after considering feedback from stakeholders and the public on draft rules issued on July 11, 2025, which were publicly shared on July 14, 2025.
Union Road Transport and Highways Minister Nitin Gadkari emphasized that implementing a seamless, barrier-free tolling system by 2026 is a top government priority.
Initially, 10 tenders have been issued for the system, which is expected to reduce toll collection costs from 15% to about 3%.
