The Supreme Court on 25 March 2026 dismissed the Special Leave Petition filed by T S R Venkatramana challenging the constitutional validity of toll collection on national highways. A bench comprising Justice B.V. Nagarathna and Justice Ujjal Bhuyan held that any toll or fee collected for the use of national highways declared by or under law made by Parliament is squarely covered within the Union List under Entry 23 read with Entry 96 of List I of the Seventh Schedule of the Constitution. The Court clarified that the expression “Tolls” in Entry 59 of List II (State List) must be restricted only to those tolls or charges which are not collected by the Union Government under the Union List.
The Court observed that Entry 23 of List I deals with “Highways declared by or under law made by Parliament to be national highways” while Entry 96 speaks of “Fees in respect of any of the matters in this List, but not including fees taken in any court.” Article 246 of the Constitution gives Parliament exclusive power to make laws with respect to any of the matters enumerated in List I. The bench noted that once a road is declared a national highway, legislative competence shifts to the Union. Consequently, the National Highways Authority of India or its concessionaires are empowered to collect toll as a fee for use of such highways.
The petition arose from the judgment dated 07 August 2025 passed by the Madras High Court in W.P.M.D. No. 17492/2015. The petitioner had challenged Rule 8 of the National Highways Fee (Determination of Rate and Collection) Rules, 2008 on the ground of lack of legislative competence and excessive delegation. He contended that the power to levy toll vests exclusively with the States under Entry 59 of List II and that collection of toll by the National Highways Authority of India or its concessionaires is unconstitutional. The Madras High Court had rejected the challenge, holding that toll on national highways is a fee for a Union subject and that Entry 59 of List II applies only to tolls on State roads, bridges and ferries.
The Supreme Court found no reason to interfere with the High Court’s reasoning. It reiterated that in pith and substance, toll collected for use of national highways falls squarely within the Union List. The Special Leave Petition was accordingly dismissed. All pending applications were also disposed of.
Case Title: T S R Venkatramana v. The Union of India & Ors.
Case No.: Special Leave Petition (Civil) Diary No(s). 72032/2025
Date of Order: 25 March 2026
Coram: Hon’ble Mrs. Justice B.V. Nagarathna and Hon’ble Mr. Justice Ujjal Bhuyan
Click HERE for the ORDER
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