Pending toll fees? You may not be able to sell your car. Here's what you need to know

The Ministry of Road Transport and Highways (MoRTH) has amended the Central Motor Vehicles Rules, 2026, tightening norms around toll payments on National Highways.

According to the ministry, the changes are meant to improve user fee compliance, strengthen the efficiency of Electronic Toll Collection (ETC), and curb toll evasion. The amendments are also aimed at preparing the ground for the Multi-Lane Free Flow (MLFF) system, which will allow barrier-free tolling across the national highway network.

A key change is the introduction of a new term in the rules: “unpaid user fee.” This provision can effectively block the sale or transfer of a vehicle if there are pending toll payments linked to it.

What happens if your vehicle has unpaid toll dues?

Under the revised rules, a No Objection Certificate (NOC) will not be issued unless all outstanding toll charges are cleared. Without an NOC, a vehicle cannot be sold or transferred to another state. In short, unpaid toll fees can stop both sale and re-registration.

Vehicles with pending toll dues will also be ineligible for the issue or renewal of a Certificate of Fitness, which is mandatory for older vehicles and commercial vehicles to remain legally roadworthy. For commercial vehicles applying for a National Permit, the rules now clearly require that there be no unpaid toll fees associated with the vehicle.

MoRTH has also amended Form 28, the application used to obtain an NOC. Applicants will now have to declare whether any unpaid toll charges are pending against their vehicle and provide the relevant details.


The ministry has stated that no NOC will be issued for vehicle transfer, fitness renewal, or permits if toll dues remain unpaid. The amended rules define “unpaid user fee” as the toll payable for using a National Highway stretch where the ETC system has recorded the vehicle’s passage, but the fee has not been received in line with the National Highways Act, 1956.

MoRTH said the amendments will help the National Highways Authority of India (NHAI) promote transparent, technology-driven tolling systems for the long-term development and maintenance of the highway network.

Form 28 has been updated to require disclosure of any pending demand for unpaid toll fees. The rules also allow electronic issuance of relevant parts of the form through the designated online portal, promoting digital processes.

Form 28 is a crucial document for obtaining an NOC, which is required to transfer vehicle ownership to another state or district and confirms that there are no pending taxes, challans, or legal issues linked to the vehicle.

The amendments were finalised after draft rules were published in a Gazette notification on July 11, 2025, inviting feedback from stakeholders and the public. Copies of the draft were made public on July 14, 2025, and the final rules were notified after considering the responses received.

Earlier, Union Road Transport and Highways Minister Nitin Gadkari had said that seamless, barrier-free tolling would be a top priority in 2026. He noted that several tenders had already been issued and that tolling costs were expected to drop sharply.

The upcoming system will enable barrier-free tolling using integrated technologies such as Automatic Number Plate Recognition (ANPR) with AI analytics and RFID-based ETC through FASTag. Vehicles will be charged based on identification by ANPR cameras and FASTag readers, without stopping at toll plazas.

In cases of non-compliance, e-notices will be issued, and failure to pay may lead to FASTag suspension and other penalties linked to the VAHAN system.