The Government of India has implemented significant revisions to the Central Motor Vehicles Rules for 2026, introducing a framework that links essential vehicle-related services to the settlement of outstanding toll fees. This regulatory shift aims to curb revenue loss at Electronic Toll Collection (ETC) points across the national highway network, ensuring that even vehicles equipped with FASTag cannot bypass payment obligations without administrative consequences.
Impact on Vehicle Registration and Transfers
Under the newly defined “unpaid user fee” provision, vehicle owners with outstanding toll dues will face restrictions on several critical services. The government now has the authority to withhold the issuance of a No Objection Certificate (NOC), effectively stalling the following processes:
- Transfer of vehicle ownership
- Re-registration of vehicles in different states
- Renewal or issuance of Certificate of Fitness for both private and commercial vehicles
Furthermore, commercial operators will be unable to secure a National Permit for their fleet if any toll fees remain unpaid. This measure ensures that compliance is met before vehicles are authorized for interstate transport.
Revised Application Procedures
The administrative process for obtaining an NOC has been streamlined through a revised Form 28. While the updated system allows for online submissions of relevant sections, the applicant’s eligibility is strictly contingent on a clean record. This includes the absence of pending traffic challans, taxes, or any unresolved legal issues associated with the vehicle. The final draft of these rules, which were initially previewed in July 2025, incorporates feedback from various public and industry stakeholders.
Integration with Multi-Lane Free Flow Systems
These legislative updates are designed to support the upcoming transition to Multi-Lane Free Flow (MLFF) tolling. Unlike current systems that rely on physical barriers, MLFF will utilize a digital, barrier-free approach to collect fees. By establishing a legal mechanism to penalize non-payment through documentation holds, the National Highways Authority of India (NHAI) aims to maintain high recovery rates as physical toll plazas become redundant.
