Delhi High Court stays NOIDA's ₹100 crore retrospective tax demand for ads on DND flyover
The Delhi High Court recently restrained the New Okhla Industrial Development Authority (NOIDA) from taking coercive measures against a firm over a ₹100-crore retrospective tax demand over advertisements on the Delhi-NOIDA-Delhi Flyway (DND Flyway) [Noida Toll Bridge Company Limited v New Okhla Industrial Development Authority].
In an interim order passed on September 25, Justice Jasmeet Singh granted relief to the Noida Toll Bridge Company Limited (NTBCL), a special purpose vehicle (SPV) established to build, operate and maintain the DND Flyway.
“Prima facie, it seems that the petitioner has a right to display advertisements and the balance of convenience lies in favour of the petitioner. In case interim orders are not granted to the petitioner, it may cause irreparable damage and loss to the petitioner which cannot be compensated in terms of money. For the reasons noted above, no coercive measures shall be taken against the petitioner pursuant to the impugned letter dated 10.09.2025 till the next date of hearing,” the Court ordered.
The case will be heard next on January 16.
Notably, NTBCL’s right to collect user fees was struck down by the Allahabad High Court in 2016 and later upheld by the Supreme Court in December 2024. However, the firm stated that its contractual right to display advertisements was unaffected.
The Court was told that NOIDA retrospectively increased advertising rates from ₹125 to ₹457 per square foot per month, effective April 1, 2024 and issued a letter demanding the pending dues on September 10, 2025 without issuing prior notice.
NTBCL contended that the company’s right to display advertisements on the Noida side of the DND Flyway stems from a 1997 concession agreement and a 1998 land lease deed, neither of which allow NOIDA to unilaterally revise the licence fee.
After hearing the case, the High Court protected the company and issued notice to NOIDA.
NTBCL was represented by Senior Advocate Rajiv Nayar along with advocates Raunak Dhillon, Madhavi Khanna, Nihaad Dewan and Akshit Singla.
Advocates Aviral Saxena and Abhinav Sharma appeared for NOIDA.
[Read Order]