12.55 Lakh Refunds In 2024 Due To Incorrect Toll Deductions: Government
New Delhi: The Indian government has revealed that 12.55 lakh FASTag users were refunded in 2024 due to incorrect toll deductions. This figure, reported by the National Payments Corporation of India (NPCI), represents 0.03% of the 410 crore transactions conducted through FASTag during the year. The data sheds light on the ongoing discrepancies in the National Electronic Toll Collection (NETC) system and has prompted authorities to impose penalties on toll collection agencies while implementing stricter monitoring mechanisms.
Among the reported refund cases, the highest number—over 5 lakh—were due to toll fare miscalculations. Another 4.45 lakh instances involved users being charged for transactions they did not recognise or avail of. Additionally, 1.36 lakh transactions were identified as duplicate deductions at toll plazas, while 1.25 lakh cases involved return journey discounts not being applied. Around 47,000 transactions were flagged where users had already paid by other means but were still charged through FASTag.
In response to these discrepancies, the government has taken corrective action by penalising toll collection agencies. Over ₹2 crore in fines have been imposed on agencies responsible for incorrect deductions. Under the current contractual agreements, agencies are fined ₹1 lakh per case if a vehicle is charged without actually crossing the toll plaza. In cases where agencies are found to have charged excess toll amounts, they are subject to a penalty calculated using a strict formula—excess toll amount multiplied by 30 and then by 50. Furthermore, if an agency is penalised three times for excess charging, part of their performance security, equivalent to 15 days of agreed remittance, is forfeited. If violations continue, the entire performance guarantee is revoked, and the contract is terminated.
To prevent further discrepancies, the National Highways Authority of India (NHAI) has put in place a monitoring system. Toll agencies are required to submit monthly reports on false deductions, and NHAI investigates each case. Users can report incorrect deductions via the toll-free helpline (1033) or through a dedicated email (falsededuction@ihmcl.com). Each verified complaint results in a ₹1 lakh penalty against the toll collection agency.
One of the key reasons behind wrongful toll deductions is manual entry errors by toll operators. When incorrect Vehicle Registration Numbers (VRN) are entered into the system, users may be charged even if they have not travelled on a National Highway or Expressway. Additionally, FASTag readers sometimes register multiple scans of the same vehicle, leading to double deductions. To mitigate this issue, the government has introduced software-based solutions to block duplicate transactions. The system is now designed to prevent the same FASTag from being charged twice within a 15-minute window.
Authorities are also formulating new guidelines to eliminate manual intervention in VRN-based transactions. By reducing human error, the government aims to improve accuracy in toll deductions and enhance the reliability of FASTag payments. Efforts are also being made to strengthen the accountability of toll collection agencies, ensuring that wrongful deductions are minimised.
