NHAI Under Supreme Court Scrutiny Amid Poor Road Conditions and Launch of FASTag Annual Pass from August 15, 2025

The National Highways Authority of India (NHAI) has recently come under sharp criticism from the Supreme Court over toll collections on unfinished and poorly maintained highways, while simultaneously preparing to launch a major upgrade to its toll payment system.

On August 14, 2025, the Supreme Court expressed strong displeasure regarding the collection of toll by NHAI from commuters despite substandard road conditions and persistent traffic congestion, particularly highlighting the situation on National Highway 544 in Kerala. The apex court questioned the authority’s justification for toll collection amid incomplete roadworks and poor infrastructure, emphasizing that public trust is critical in maintaining the relationship between road users and the toll-collecting body. The Supreme Court bench consisting of Chief Justice Bhushan R Gavai and Justice K Vinod Chandran remarked on the questionable rationale behind collecting tolls in such conditions, portraying it as a breach of public service responsibility[1].

In parallel, the NHAI is launching a new initiative aimed at easing the toll payment process for private vehicle owners. From August 15, 2025, the NHAI will roll out the FASTag Annual Pass, a prepaid toll payment solution that allows private car, jeep, and van owners to travel on national highways and expressways without paying toll fees at every plaza individually. Priced at Rs 3,000, the pass offers up to 200 toll crossings or one year of validity, whichever is earlier. This initiative is designed to reduce congestion at toll plazas, shorten wait times, and enhance convenience for frequent highway commuters[2][3][4][5].

The FASTag Annual Pass is integrated with the existing electronic toll collection infrastructure and can be purchased via the Rajmarg Yatra app or the official NHAI/MoRTH website using vehicle and FASTag details. After one year or 200 trips, the pass expires and users must manually renew it; there is currently no auto-renewal option. This prepaid system promises to streamline toll payments by consolidating multiple transactions into a single cost-effective pass, particularly benefiting those regularly traveling on routes with multiple toll booths[2][3][4][5].

These developments place the NHAI at a pivotal moment—caught between judicial scrutiny of operational inefficiencies and the push to modernize toll collection with user-friendly innovations. While the Supreme Court criticized the agency for failing to maintain road quality and for collecting toll illegally on incomplete roads, the FASTag Annual Pass initiative shows NHAI’s commitment to improving the commuter experience through technological advancements.

As these contrasting issues unfold, road users and stakeholders will keenly watch how NHAI balances infrastructure development with transparency and trust-building measures. The effectiveness of the FASTag Annual Pass and the resolution of the Supreme Court’s concerns over road conditions will shape the future perception and performance of India's national highway network.