The Supreme Court has directed states and Union territories to take stricter action against vehicle owners with unpaid traffic e-challans, including restricting several vehicle-related services until outstanding fines are cleared.
A bench comprising Justice JB Pardiwala and Justice KV Viswanathan said authorities must ensure that e-challans do not merely get issued but that the fines are actually recovered.
The Supreme Court was informed that around Rs 49,194.05 crore remained outstanding against e-challans, while Rs 26,175.05 crore had been recovered.
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What Happens If You Have Unpaid Challans?
Under the Supreme Court’s directions, authorities have been asked to restrict several online vehicle services for vehicles with outstanding traffic fines.
This includes:
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Renewal of the vehicle registration certificate (RC)
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Issuance of a duplicate RC
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Updating the vehicle owner’s address
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Issuance of a fitness certificate
Vehicles with outstanding e-challans can also be blacklisted on the central Parivahan portal, which can affect their sale or transfer until the dues are cleared.
The Court also directed that no Pollution Under Control (PUC) certificate should be issued while pending traffic fines remain unpaid.
Authorities have additionally been directed to conduct random checks. If a vehicle is found to have an e-challan that has not been complied with, necessary action can be taken under the law, including possible impounding of the vehicle.
Driving Licence Renewal Could Also Be Affected
The Supreme Court has also directed action in cases involving multiple traffic violations.
The bench referred to Rule 21(25), which was amended in 2026. Under the revised rule, committing five or more offences or violations under the Motor Vehicles Act or its Rules within a year is considered an act of nuisance or a danger to the public.
The provision is relevant to action concerning driving licences in cases involving repeated traffic violations.
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SC Asks Authorities To Recover Unpaid Challans
The directions are part of a road-safety case dating back to 2012, in which the Supreme Court has been monitoring the implementation of the Motor Vehicles Act and Central Motor Vehicles Rules for nearly 14 years.
The bench said issuing an e-challan should not be the end of the process and that authorities must also ensure the fines are recovered.
It directed authorities to carry out random checks and said vehicles found with unpaid e-challans should be dealt with as per the law, including possible impounding.
The Court’s directions come as authorities work to recover a large backlog of unpaid traffic fines. The Rs 49,194.05 crore outstanding amount underscores the scale of the recovery challenge facing states and Union territories.
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