Major relief for vehicle owners: Odisha reduces traffic challan fines

The Odisha Government on Friday announced a major relief for vehicle owners and drivers by allowing compounding of certain traffic rule violations under the Motor Vehicles Act, 1988, till July 31, 2025.

In a fresh notification issued by the Commerce and Transport (Transport) Department, the State Government has permitted offenders to settle challans for specific violations by paying reduced compounding fees. The decision aims to ease the backlog of pending traffic challans and promote voluntary compliance.

As per the notification, offences committed on or before July 31, 2025, under Sections 180, 181, 194B(1), 194C, 194D, 194E, and 196 of the MV Act can be compounded by paying concessional fines.

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Under the revised rates, driving without a valid licence or allowing an unlicensed person to drive will attract a fine of Rs 2,500 instead of Rs 5,000.

Riding without a helmet or seatbelt, or carrying more than one pillion rider, will invite a Rs 500 fine instead of Rs 1,000. Not giving way to emergency vehicles will cost Rs 5,000, while driving without insurance will draw a Rs 1,000 fine.

The order, issued by Principal Secretary Usha Padhee, clarifies that the relaxation will not apply to cases where prosecution reports have already been filed in court.

The Transport Commissioner-cum-Chairman, STA, Odisha, Cuttack, has directed all RTOs and enforcement officers to implement the scheme immediately.