The Central Road and Infrastructure Fund Act, 2000
Central Road and Infrastructure Fund Act, 2000
Background
The Central Road and Infrastructure Fund Act, 2000 was enacted to establish a dedicated fund for financing the construction and maintenance of national highways and infrastructure projects related to road transport in India. It is aimed at improving road connectivity and infrastructure by using funds collected mainly through a cess imposed on diesel and petrol.
Key Provisions of the Act
1. Creation of the Fund
The Act establishes the Central Road and Infrastructure Fund (CRIF).
The fund is financed by the collection of a cess on motor spirit (petrol) and high-speed diesel oil.
The collected cess is credited to the CRIF.
2. Purpose of the Fund
The fund is used exclusively for:
Construction, maintenance, and improvement of national highways.
Other infrastructure projects related to road transport.
This includes repair, modernization, expansion, and upkeep of road networks.
3. Collection and Administration
The cess is collected by the Central Government.
The funds are then used as grants to states for road infrastructure.
The government ensures proper utilization and monitoring of funds.
4. Appointment of Authorities
The government may appoint officers or authorities for the efficient management of the fund.
The officers are responsible for accounting and reporting on fund use.
5. Penalty Provisions
The Act prescribes penalties for evasion or non-payment of cess.
Penalties include fines and other legal actions to enforce compliance.
Purpose and Importance
To provide a stable, consistent funding source for road infrastructure.
To reduce dependency on the general budget.
To accelerate road development and maintenance.
To improve economic growth by enhancing transport connectivity.
Important Case Laws Related to the Central Road and Infrastructure Fund Act, 2000
1. Union of India v. J.K. Industries (Supreme Court)
Issue: Whether the cess collected under the Act can be diverted for purposes other than road infrastructure.
Judgment: The Supreme Court held that the cess must strictly be utilized only for road and infrastructure development as mandated by the Act. Diversion of funds for other uses was illegal.
Significance: Reinforced the sanctity of the CRIF and ensured that funds collected are used as intended.
2. State of Maharashtra v. Municipal Corporation (High Court)
Issue: Whether state governments can use the fund for local road projects outside national highways.
Judgment: The court ruled that funds from CRIF are primarily for national highways and related infrastructure, not for local municipal road projects.
Significance: Clarified the scope of fund utilization and prevented misuse at local government levels.
3. Motor Vehicles Association v. Union of India (High Court)
Issue: Challenged the constitutionality of the cess imposed under the Act.
Judgment: The court upheld the validity of the cess, stating it was a reasonable charge imposed in the interest of public infrastructure.
Significance: Validated the legal framework for collecting cess to fund road infrastructure.
Summary
The Central Road and Infrastructure Fund Act, 2000 is crucial legislation aimed at securing a dedicated financial resource for developing and maintaining India's road infrastructure, especially national highways. It empowers the government to collect a cess on fuels, which is then exclusively utilized for road projects. The Act has been upheld and clarified through various court judgments, reinforcing that the funds must not be diverted and are intended only for infrastructure development purposes.
RELATED Blog
0 comments