Bhadohi: In a major administrative action linked to the controversial stamp duty dispute involving the Lalangar Toll Plaza on the Varanasi-Prayagraj Highway, the Bhadohi administration has imposed a penalty of ₹6.28 crore on Kashi Toll-Way Private Limited, the company operating the toll plaza. The court of District Magistrate Shailesh Kumar has also directed the company to deposit ₹62.88 crore as pending stamp duty. Authorities have warned that failure to comply within the stipulated period could lead to further legal and revenue recovery proceedings.
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Stamp Duty Evasion Case Under Scrutiny
The development has triggered fresh debate in Uttar Pradesh over transparency in toll plaza contracts, government revenue compliance and financial practices in large infrastructure projects. Officials indicated that the action is not an isolated case but part of a wider scrutiny of toll-related agreements across the state.
According to officials, an FIR was registered against Kashi Toll-Way Private Limited on June 20, 2025, over allegations of stamp duty evasion. Authorities suspected that the company failed to pay the required stamp duty on the high-value agreement linked to the operation of the Lalangar Toll Plaza. Following the complaint, the registry department and other administrative agencies initiated a detailed investigation.
During the probe, investigators found that the company had received the contract to operate the Lalangar Toll Plaza on March 18, 2023, for a period of 15 years. In return, the company had reportedly paid nearly ₹3144 crore to the National Highways Authority of India. Officials said the agreement is considered one of the largest toll contracts in the region.
DM Court Orders Payment Within One Month
The registry department’s investigation concluded that the total contract value was approximately ₹3244 crore, on which stamp duty was payable at the rate of 2 percent under existing regulations. Authorities alleged that the company failed to deposit the required duty, causing substantial loss to government revenue. Based on the findings, the matter was placed before the DM court, which later passed the order after detailed proceedings.
The court has directed the company to deposit ₹62.88 crore as stamp duty along with the ₹6.28 crore penalty within one month. Authorities warned that if the order is not followed, coercive recovery measures, attachment of assets and additional legal proceedings could be initiated.
Officials said the case has gained significance because it is linked to a broader investigation initiated after an important Supreme Court ruling. Following the court’s directions, the state government ordered a review of major toll plaza agreements across Uttar Pradesh. Several contracts and financial documents belonging to toll operators were subsequently examined.
Sources indicated that FIRs had also been registered against nearly 55 toll companies across the country in similar matters. Investigating agencies are now examining whether stamp duty evasion was carried out systematically in large-scale toll contracts.
Toll Contracts and Revenue Compliance Under Review
The Lalangar Toll Plaza is already considered among the costliest toll plazas in the country. Located on the busy Varanasi-Prayagraj Highway, the plaza reportedly charges comparatively higher toll fees from commuters. Officials stated that due to the large number of flyovers and special highway structures on the route, several vehicle categories are charged almost double toll fees.
Data available with authorities shows that nearly 11,000 small and large vehicles pass through the toll plaza every day. The company has toll collection rights over a stretch of around 72.644 kilometres. Because of the heavy traffic volume and long concession period, the project is regarded as financially significant.
Administrative officials said any irregularity involving government revenue would be dealt with strictly. Investigating agencies are now reviewing similar contracts, financial records and documentation to ensure that all companies are complying with stamp duty and other statutory obligations.
Experts believe that if the investigation continues at the present scale, more large financial irregularities linked to the infrastructure and toll sector could emerge in the coming months.
