Bengaluru (Karnataka) [India], October 8 (ANI): Union Minister for Heavy Industries and Steel HD Kumaraswamy on Wednesday alleged that Nandi Infrastructure Corridor Enterprises Road (NICE) has collected Rs 4,756.48 crore as toll since 2008 even though the project remains incomplete, and demanded an immediate halt to toll collection.
Addressing a press conference at JDS headquarters JP Bhavan, Kumaraswamy said the toll collection is in violation of the NICE project agreements and cited Karnataka High Court observations. He said the Supreme Court has not stayed the High Court judgment.
"The original project cost of NICE road was Rs 1,583.76 crore. Yet the company has collected Rs 4,756.48 crore through toll. That is almost three times the original project cost," Kumaraswamy said.
Giving year-wise figures, he said annual toll collection was Rs 5.59 crore in 2008-09 and has risen to Rs 734.97 crore in 2024-25. A total of Rs 4,756.48 crore has been collected between 2008 and 2025.
He said JDS and former Prime Minister H.D. Deve Gowda have been fighting this issue for nearly two decades and the matter is now reaching a decisive stage.
Kumaraswamy said a Toll Concession Agreement (TCA) was signed on September 4, 2000 between the State PWD and NICE. As per the agreement, the project had to be implemented as per the original Framework Agreement (FWA) dated April 3, 1997. In case of any conflict, the FWA would prevail.
The agreement also envisaged construction of a four-lane concrete road, service roads and maintenance areas before starting toll collection.
"These conditions were not fully complied with, yet toll collection started in 2008. NICE has been collecting toll without completing the project and has also acquired farmers' lands," he alleged.
Kumaraswamy alleged that roads have been built over lake areas. Referring to the H.T. Somashekar Reddy case, he said NICE had sought 6,999 acres before the Supreme Court, including 2,193 acres for Peripheral Road, which comprised agricultural and government land and did not include lake areas.
He said engineer Kapil Sharma in 2021 used the Dishaank app to identify roads built over lakes and filed a complaint. Documents related to alleged lake encroachment were released at the press conference.
He also alleged that the project alignment was altered through the Outline Development Plan (ODP) on February 12, 2004 without Cabinet approval, leading to expansion of land allocation.
As per documents cited by him, land for the Peripheral Road was increased from 2,193 acres to 2,747 acres and for the toll road from 6,999 acres to 9,468 acres.
He referred to the Karnataka High Court judgment of July 29, which held that altering the original agreement through ODP amounted to a "fraud on statute and the Constitution" and criticised state authorities.
Kumaraswamy said NICE filed an SLP in the Supreme Court challenging the High Court judgment, but the Supreme Court did not grant a stay and posted the matter to November 2 for further hearing. 25 lawyers, including those for the state government, appeared in the matter.
In view of the HC judgment and no stay from the SC, toll collection should be stopped immediately, he argued.
He also cited a Cabinet decision during the SM Krishna government on Nov 4, 2002, that toll collection should be withdrawn if a four-lane concrete road was not completed in six years.
Kumaraswamy alleged NICE generated revenue through other means in violation of FWA - Rs 384 crore through land sales, Rs 108 crore as advances towards joint development of land and construction projects, and Rs 338 crore from convention centres.
He cited recommendations of former Minister T.B. Jayachandra, who chaired a House Committee in 2016 which recommended takeover of NICE project and recovery of excess land.
He questioned Jayachandra's change in stance, stating in Aug 2023 that the NICE road was not required, and then writing to the CM in May 2025 seeking completion of the project. "This raises questions about what is happening behind the scenes," he alleged.
Strongly objecting to suggestions that toll collection could continue for another 10 years, Kumaraswamy said, "How many more years will this alleged collection continue? They say there are still another ten years of toll collection. On what basis? This cannot continue."
He reiterated the demand to immediately stop toll collection on NICE Road and for the state government to take appropriate action as per court proceedings and original agreements.
Former MLAs Suresh Gowda, Chowdareddy Thoopalli, Greater Bengaluru JDS President HM Ramesh Gowda and State Spokesperson HN Devaraju were present. (ANI)
NICE collected Rs 4,756.48 crore in toll, almost 3 times project cost, alleges HD Kumaraswamy
