Prayagraj revenue authorities expose ₹6.65 crore stamp‑duty evasion across four toll plazas after vendors under‑declare contract values and pay only token ₹100 stamps; case now before the District Magistrate’s court amid missing NHAI contract data.

₹6.65 Crore Stamp Duty Evasion Exposed at Four Toll Plazas: Major Revenue Leak Uncovered

The420.in Staff
4 Min Read

A major financial irregularity has been exposed in the operation of toll plazas in the Prayagraj region, where stamp duty evasion worth approximately ₹6.65 crore has been identified across four toll plazas. According to the registration department, the concealment of contract values significantly impacted the accurate assessment of stamp duty, resulting in substantial loss to government revenue.

Officials confirmed that the matter is currently under consideration in the District Magistrate’s court, where hearings are ongoing. The stamp department has alleged that the inability to access actual contract values of toll operations has made it difficult to determine the full extent of stamp duty evasion across the region.

Stamp‑Duty Evasion Breakdown by Toll Plazas

As per the Assistant Inspector General (Stamp), a total stamp duty evasion of ₹6,65,53,580 has been recorded in these four toll plazas alone. He stated that, as per regulations, stamp duty is levied at 4% in urban areas and 2% in semi-urban areas on toll concession agreements, but compliance has been widely ignored in several cases.

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Investigations revealed that a toll plaza on the Kunda–Pratapgarh route had a contract value of ₹43,54,01,460, against which a stamp duty of ₹87,08,040 was applicable. However, only a token stamp worth ₹100 was reportedly paid, leading to an estimated evasion of over ₹87 lakh in this single case.

Similarly, other cases include the Badauri Bindki toll plaza in Fatehpur district, where evasion of ₹3,15,43,200 was identified; the Katoghan–Khaga toll plaza with ₹2,39,29,240; and the Jindpur Sadar toll plaza with ₹23,73,200 in alleged stamp duty evasion. Officials said that in all these cases, stamp duty was not paid in accordance with the contractual valuation.

Missing NHAI Data and Wider Revenue‑Leak Risk

Authorities further noted that these figures represent only those toll plazas where contract values could be verified. Several other toll plazas in the Prayagraj region, including Mauaima, Handia, Kokhraj, Harra, and Umapur, are yet to disclose their contract details, making it impossible to estimate potential revenue loss in those locations.

The stamp department had sought contract-related information from the National Highways Authority of India (NHAI), but local offices reportedly failed to provide the data. Officials were informed that such information is centrally maintained and can only be accessed from the Delhi headquarters. However, even the central office has not yet provided a clear response.

Due to the lack of documentation, authorities stated that the actual magnitude of stamp duty evasion across the region may be significantly higher than currently estimated.

According to the stamp department, if complete contract data of all toll plazas is obtained, the total evasion figure could increase substantially. At present, legal proceedings have been initiated in four cases, and judicial hearings are underway.

Governance Gaps and Need for Stronger Oversight

Experts believe that lack of transparency and non-availability of contractual data in infrastructure projects like toll operations raises serious concerns about financial accountability and revenue compliance mechanisms.

Department officials have indicated that further investigations will be conducted across additional toll plazas in the region. Once contract documents are obtained, a comprehensive audit of stamp duty compliance will be carried out.

The case highlights not only significant revenue leakage but also underscores the urgent need for stronger monitoring systems and greater transparency in government contracting processes.

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