Pay Rs 1000 for Rs 5000 traffic challan! Odisha announces one-time settlement scheme; check other exemptions

The Odisha Government on Wednesday rolled out a One-Time Settlement Scheme (OTSS) to help vehicle owners clear their pending e-challans at reduced rates. The notification was issued by the Commerce and Transport Department, highlighting the state’s concern over rising road safety violations despite continuous enforcement measures.

According to the notification, the scheme will cover all pending e-challans up to July 31, 2025, except those cases where prosecution reports have already been filed in court. The scheme will remain valid for six months from the date of issue and offers violators a chance to settle dues at discounted penalty rates.

New traffic challan rules

New traffic challan rule

As per the annexure, penalties have been significantly reduced. For instance, general offences under Section 177 of the Motor Vehicles Act, which attract fines of up to Rs 500, can now be settled at 50% of the original penalty. Similarly, overspeeding penalties for Light Motor Vehicles (LMVs) will be reduced to Rs 1000, and for Heavy Motor Vehicles (HMVs) to Rs 2000. Using a mobile phone while driving, jumping red lights, or dangerous driving—all carrying fines of up to Rs 5000—can now be settled at Rs 1000 each.

The government emphasized that this is a one-time opportunity. After the scheme’s expiry, violators will have to pay the full penalty as prescribed under the Motor Vehicles Act, and vehicles with unpaid challans may also face restrictions on various transactions.

Principal Secretary Usha Padhee, in the notification, stated that the initiative aims to recover outstanding fines efficiently and encourage safer driving habits. The Transport Department has also assured that strict enforcement will continue against repeat offenders and those unwilling to improve their road safety behaviour.

Copies of the notification have been forwarded to all Collectors, RTOs, OSRTC, and the Gazette Cell for immediate implementation and wide circulation.