Odisha launches one-time settlement scheme for e-challan dues, aiming to ease backlog and improve compliance

Bhubaneswar, Odisha — September 18, 2025 The Odisha government has today unveiled a one-time settlement scheme for residents with outstanding e-challan dues, a move aimed at clearing long-pending traffic fine liabilities and encouraging better compliance with traffic rules. The scheme is part of the state’s broader push to improve road safety, reduce administrative burden, and deliver relief to citizens—especially those who may have accumulated fines without being able to pay due to financial or other constraints. Under the scheme, vehicle owners with pending e-challans will be able to settle their fines at a reduced rate. While full details on the discount or waivers are being finalized, the government has indicated that such settlements will be less stringent than what has existed previously, with leniency in interest or penalty components in many cases. The move is expected to bring many of the currently unpaid e-challans into compliance, ease the burden on vehicle owners, and clean up administrative records. The scheme has been welcomed by motorists and civil society groups, many of whom had expressed frustration over accumulation of fines that might have gone unnoticed or unresolved due to lack of awareness, mobility issues, or bureaucratic delays. By offering a reset, the administration hopes not only to improve compliance, but also to enhance public perception of fairness in law enforcement. Officials say that this settlement drive will run for a limited period. To be eligible, vehicle owners must apply within the window specified by the transport department. They must provide details of their outstanding challans, usually via state e-challan or transport department portals, and make payment of the reduced amount. Upon successful settlement, records will be updated to reflect cleared status, helping with matters such as vehicle inspections, renewals, or legal dues. Beyond financial relief, the one-time settlement is being seen as a tool to improve road discipline. With many citizens currently avoiding payments or ignoring notices, the unpaid challan system has often created friction in law enforcement and reduced trust in traffic administration. The settlement scheme may help restore confidence by showing that government is willing to balance enforcement with compassion. However, implementation will need clear procedural guidelines to avoid misuse or fraud. Transport authorities will need to ensure accurate records, fair communication to all affected vehicle owners, and transparency in how settlement amounts are calculated. Moreover, the scheme must guard against letting negligent behavior become normalized under a culture of easy settlements; ideally, those settling should be encouraged to maintain compliance after the scheme ends. There are also concerns about reachability: many rural vehicle owners may not know about the scheme, or lack access to digital portals. Officials have announced that awareness-drives will be undertaken, with notices via local offices, transport departments, community outreach, possibly via Panchayats, ASHA workers or other local networks. The overall expectation from the government is that the one-time settlement scheme will reduce the backlog of unpaid e-challans significantly, unclog transport department records, help vehicle owners without excessive financial pressure, and improve compliance moving forward. If executed well, it could become a model for similar settlements in other states balancing law enforcement and citizen convenience.