Traffic Challan Not Paid? RC Will Be Cancelled, License Suspended – Know the New Rules

Traffic Challan Update: The central government is soon going to implement strict changes to the Motor Vehicles Rules. Under these new rules, if a person fails to pay a traffic fine on time, their vehicle’s RC (Registration Certificate) will not be renewed, and their driving license may also be suspended. The Ministry of Road Transport and Highways (MoRTH) has prepared a draft notification in this regard and is seeking suggestions from the states. The objective of the new rules is not only to increase fine collection but also to ensure road safety and compliance with traffic rules.

Time Limit for Paying or Challenging Fines

According to the proposed rules, traffic fines will be sent to the vehicle owner or driver either manually within 15 days or online as an e-challan within 3 days. After receiving the challan, the vehicle owner will have 45 days to either pay the fine amount or challenge the challan with supporting documents. If no action is taken within the stipulated time, the challan will be automatically considered accepted.

Vehicle and License Will Be Locked

According to the draft rules, vehicles and licenses of individuals with outstanding fines will be marked as “Not to be Transacted” on the Vahan and Sarathi portals. This means that the RC will not be renewed, the license will not be renewed or updated, and no services such as address change or transfer will be available. No government services of any kind will be provided until the fine is settled.

Strict Enforcement Already Underway in Uttar Pradesh

Uttar Pradesh has already taken steps towards implementing this rule. The state has over ₹5,000 crore in outstanding fines. 3,01,410 vehicles and 58,893 license holders have been identified with outstanding fines. Vehicles with five or more outstanding fines will have their RCs blacklisted. This means that driving such vehicles on the road will become illegal.

Stricter Penalties for Repeat Offenders

The new rules include stricter provisions for repeat traffic offenders. If a person fails to pay three consecutive fines within three months, their driving license can be suspended. Three or more red light violations or dangerous driving offences within a year will result in license suspension for at least three months.

Fine Collection and the Option to Challenge

The fine collection rate in the country is still very low. For example, only 14 percent of fines are collected in Delhi, while the collection rate is 24 percent in Karnataka and 27 percent in Tamil Nadu and Uttar Pradesh. The government has also clarified that if someone believes a fine is incorrect, they can challenge it on the portal with the necessary documents. If the authorities do not decide within 30 days, the fine will be considered invalid.

Purpose of Implementing the Rules

The government believes that people deliberately avoid paying fines and keep postponing court cases. By linking the RC (Registration Certificate) and license to the fines, the government now aims to enforce accountability, not just rely on voluntary compliance. The implementation of the new rules will lead to serious consequences for non-payment of traffic fines, including RC cancellation, license suspension, and denial of government services. This step is aimed at improving road safety and ensuring compliance with traffic rules.