Lok Sabha Question No. 123 (STARRED), answered on 2025-02-13
Subject: Toll Frauds
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Thiru Dayanidhi Maran

be pleased to state:

- (a)  the  measures that the Government currently has in place to detect and prevent fraud at toll plazas;
- (b) the frequency at which toll plaza systems are audited for security and operational integrity along with the mechanism available for the purpose thereof;
- (c) whether there are specific standards or certifications that toll plaza software must comply with to ensure robustness against tampering and if so, the details thereof;
- (d)  whether  there  are  plans  to  upgrade  the  FASTag  system  to  detect discrepancies or unauthorized software installations in real time and if so, the details thereof;
- (e) whether the large-scale fraudulent operations, like the recent report of  a  scam  spanning  forty-two  toll  plazas  in  fourteen  States  were  not detected earlier and if so, the reasons therefor;
- (f)  the  manner in which the Government plans to address the systemic vulnerabilities exploited in this case; and
- (g)  whether  toll  plaza  operators  and  IT  personnel  are  subjected  to background checks before being employed, if so, the details thereof and the  penalties  or  punitive  actions  enforced  against  toll  plaza  operators involved in fraud?

## GOVERNMENT OF INDIA

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA STARRED QUESTION NO. 123

## ANSWERED ON 13 TH  FEBRUARY, 2025

## TOLL FRAUDS

## *123. THIRU DAYANIDHI MARAN:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

## ANSWER THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS (SHRI NITIN JAIRAM GADKARI) (a) to (g) A Statement is laid on the Table of the House.

## STATEMENT

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (g)  OF  LOK SABHA  STARRED  QUESTION  NO.  123  FOR  ANSWER  ON  13.02.2025 ASKED BY THIRU DAYANIDHI MARAN REGARDING TOLL FRAUDS.

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- (a) Presently, approximately more than 98% of user fee collection takes place through FASTag under National Electronic Toll Collection (NETC) program.  All the FASTag  transactions  are  processed  in a  secure ecosystem involving Toll Management System Software, Acquirer Bank at  fee  plaza,  National  Payment  Corporation  of  India  (NPCI)  as  Central Clearing House (CCH) and FASTag Issuer Bank. The transaction involves a transparent process wherein the deducted user fee (Toll) is informed to the highway users and recorded in a central repository. The Electronic Toll Collection (ETC) system is designed such that no FASTag transaction can take place without the participation of all three stakeholders i.e., Acquirer Bank at user fee plaza, NPCI and Issuer Bank.

Further, the user fee collecting agencies are obligated to process the cash collection also through the Toll Management System of user fee plaza, so that a centralized record of all the collection (FASTag/Cash) is maintained. In terms of the contract entered in between  NHAI and the fee plaza operator, the cash collected from Invalid/Non FASTag vehicles is  to  be  shared  equally  between  National  Highway  Authority  of  India (NHAI) and the Toll Agency.

Also, monitoring of cash collection and exempted vehicles is part of  half  yearly  internal  audits  of  NHAI  PIUs  based  on  which  corrective measures are taken to further improve the ETC penetration.

In  addition  to  above,  the  Government  has  appointed  System Integrators to monitor the user fee plaza operations 24X7 and to report to the Central Control Room of any suspicious activity occurring at the user fee plaza.

- (b)  The  System  Integrators  (SI)  at  user  fee  plazas  are  empaneled  by Indian Highways Management Company Limited (IHMCL) for implementation of NETC program. Half yearly audit of user fee collection

are being done by Internal Auditors of NHAI and also by Comptroller & Auditor General (C&AG).

In addition to above, to ensure operational integrity and transparency  in  user  fee  collection,  NHAI  vide  Policy  Circular  dated 25.01.2024  has  issued  a  Standard  Operating  Procedure  for  ensuring Operational Transparency in Tolling Operation to be followed by the Field Officers  (Regional  Officers  and  Project  Directors).  The  SOP  includes provisions  of  surprise  checks  at  toll  plazas  and  regular  monitoring  to ensure that all transactions at toll plazas (Cash/FASTag) are processed through the Toll Management System Software.

- (c)  The  empaneled  System  Integrators  are  mandated  to  get  their  Toll Management  System  (TMS)  Software  certified  by  Indian  Computer Emergency Response Team (CERT-In) every 12 months. As per the latest empanelment guidelines of IHMCL, the TMS software is also required to be certified by Standardization Testing and Quality Certification (STQC), Ministry of Electronics and Information Technology, Government of India.

Additionally,  the  empanelment  guidelines  of  system  integrators mention specific modules to be present in the TMS software.

There  has  been  no  breach  in  the  ETC  system  which  account  for more than 98% of the user fee collection. However, it is reported that at Atraila Shiv Gulam fee plaza, there was full cash collected, part of which was  processed  through  an  unauthorised  handheld  machine  and  not through the Toll Management System Software of the fee Plaza. Learning from this incident, NHAI aims to strengthen the cash collection process from  invalid/non  FASTag  vehicles  and  additional  surveillance  is  being contemplated to strictly monitor the count of vehicle passing through the fee plaza to tally it with the receipts at the toll plaza.

- (d)  NHAI  is  considering  the  installation  of  audit  cameras  at  high-value toll plazas to independently monitor the accurate count and classification of passing vehicles using Artificial Intelligence (AI).

Additionally,  NHAI  has  invited  bids  for  the  implementation  of  a FASTag and Automatic Number Plate Recognition (ANPR)-based barrierfree tolling system on a pilot basis at Gharaunda, Choryasi, Nemili, UERII  and  Dwarka  Expressway.  This  system  enables  user  fee  collection exclusively  through  FASTag.  E-notices  are  proposed  for  Invalid/NonFASTag  vehicles,  thus  eliminating  the  cash  collection  from  the  toll collection process.

(e)  Government  has  received  some  reports  on  fraudulent  operations  at user fee plazas. The matter is being investigated and strict action will be taken against those found guilty. (f)  NHAI  has  instructed  field  officers  and  the  System  Integrators  to further improve the monitoring system and increase the surprise checks at the fee plazas. (g)  The  necessary  checks as per obligation  of  the  Contract  Agreement with  Toll  Agencies  are  implemented. In  case  of  any  non-compliance of the obligations including operational transparency by the Toll Operators, necessary  penalties  as  per  Contract  Agreement  are  imposed,  which includes debarment from NHAI for a period up to one year. Further,  NHAI strictly monitors the Contractual obligations of the Toll Collection Agencies. In past 7 agencies have been debarred/monetarily  penalised  for  breach  of  Contractual  Obligations including breach of Operational Transparency.

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