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Karnataka PWD Rejects Unauthorised Toll Increase on Bengaluru-Mysuru Corridor

It says the 7.5% adjustment breaches the concession’s requirement for prior government clearance.

Toll Plaza
The hike was part of a scheduled update under the concession agreement signed between NICE Ltd.
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Overview

  • The Karnataka Public Works Department issued a formal notice on July 8 rejecting NICE’s 7.5% toll hike as unauthorised and in violation of approval processes.
  • NICE implemented the increase on its peripheral and link roads from July 1 and maintains it falls within the 10% annual cap allowed under its agreement.
  • Article 6.4 of the concession framework obliges toll revisions to receive government sign-off before coming into effect.
  • Commuters have complained about the steep rise in charges on one of Bengaluru’s busiest privately operated routes, prompting the PWD’s intervention.
  • The dispute builds on a 2016 default notice and a pending legal case and may set precedents for future oversight of private toll operators.