Centre Proposes Tougher Rules On Unpaid E-Challans; RC, Driving Licence Services May Be Restricted
The Centre has proposed a major overhaul of the country’s traffic enforcement framework by introducing stricter penalties for motorists who fail to pay pending e-challans. Under the draft amendments to the Central Motor Vehicles Rules, 1989, vehicle owners with unpaid traffic fines may be denied access to key services related to vehicle registration certificates (RC) and driving licences (DL).
Issued by the Ministry of Road Transport and Highways, the draft rules have been opened for public feedback for 30 days before being finalised.
RC, DL Services Could Be Withheld
As per the proposal, once an e-challan attains finality—either because it was not contested within the stipulated period or after a decision by the adjudicating authority—authorities may refuse to process applications related to a person’s vehicle registration or driving licence until all pending dues are cleared.
The concerned vehicle may also be tagged as ‘Not to Be Transacted’ on the official digital platform, temporarily blocking certain vehicle-related transactions. Vehicle owners and licence holders will be informed electronically about such restrictions.
However, the proposed curbs will not apply to challans that are still under judicial or adjudication proceedings. Applications for payment of motor vehicle tax will also remain unaffected.
Focus On Stronger Digital Enforcement
The proposed amendments are part of the government’s broader push to strengthen electronic traffic enforcement by integrating challan records, vehicle registration databases and driving licence services into a single digital ecosystem.
Road safety experts have welcomed the move, saying it could significantly improve compliance. However, they have cautioned that seamless integration of databases and court records will be crucial to ensure motorists are not inconvenienced by technical glitches or delays.
States To Set Up Traffic Adjudication Mechanism
The draft rules mandate every state government to establish a dedicated system for adjudicating traffic violation cases within six months of the rules coming into force.
States will be required to appoint adjudicating authorities at the district level and provide facilities for online hearings, including video conferencing. Authorities must deliver their decisions within 30 days, while appellate authorities will also be expected to dispose of appeals within the same timeframe.
Officials May Face Penalties For Delays
To improve accountability, the draft proposes monetary penalties ranging from ₹5,000 to ₹10,000 for adjudicating or appellate authorities that fail to decide cases within the prescribed timelines.
The government said the provision aims to ensure timely disposal of cases and prevent unnecessary delays for citizens.
Digital Warnings To Get Legal Backing
The proposed amendments also seek to give legal recognition to electronic traffic warnings issued under the Motor Vehicles Act. These warnings will be recorded on official portals and may be taken into account while identifying repeat offenders.
A warning will become final if it is accepted by the recipient or if any objection against it is rejected by the competent authority.
New Online Process For Vehicle Registration Cancellation
The draft rules also introduce an electronic mechanism for cancellation of vehicle registration in cases where a vehicle has been destroyed, permanently rendered unfit, scrapped through an authorised vehicle scrapping facility, or permanently exported out of India.
Vehicle owners will be required to notify the registering authority online, generally within 30 days of the relevant event. Following verification, the authority will inform both the owner and the insurer about the cancellation. New Forms 37A and 37B have been proposed for this process.
What It Means For Motorists
If notified, the new rules would make it difficult for motorists to indefinitely ignore unpaid traffic fines by linking e-challan compliance with essential vehicle and driving licence services. While the move is expected to boost payment compliance and strengthen road safety enforcement, its effectiveness will depend on a robust digital infrastructure, accurate records and prompt resolution of disputes.