Odisha Launches One-Time Settlement Scheme for Pending Traffic e-Challans

The government of Odisha has introduced a One-Time Settlement (OTS) Scheme for pending e-challans, providing an excellent opportunity for vehicle owners to settle their outstanding dues at discounted rates. As there are lakhs of challans pending throughout the state, it is being termed a citizen-friendly program and a system-clearing reform. 

This blog goes into detail about what the scheme is, why it is important, how to leverage the scheme, and what will happen after the settlement time period has concluded.

Why This Scheme Was Introduced

In recent years, Odisha has undertaken extensive efforts and resources in traffic enforcement technology, such as CCTV cameras, automatic number plate recognition (ANPR), and smart traffic management systems. These did generate several million e-challans for infractions such as:

• Jumping red lights.
• Driving without helmets.
• Using mobile devices while driving.
• Failure to wear seat belts.
• Speeding.
• Expired pollution certificates.

However, even though enforcement improved, collection lagged behind. Many people did not respond to their challans due to high fines, lack of awareness, or simply neglect. Others simply did not know how to pay online. The outcome was:

• More than 31 lakh challans are in the books.
• Accumulated dues exceeding ₹1,265 crore.
• Courts inundated with traffic violation cases.

The OTS scheme was intended to alleviate the deadlock by providing vehicle owners with a financial incentive to pay their dues while reducing pressure on the legal system.

Also Check: Uttar Pradesh Launches ‘No Helmet, No Fuel’ Campaign: A Step Towards Safer Roads

Key Highlights of the OTS Scheme

• Criteria: All e-challans issued till July 31, 2025 shall be eligible under this policy.
• Timeframe: The scheme will last for a period of six months from the notification date.
• Not applicable: Challans already taken to court (with prosecution reports filed) are not applicable.

Who Can Benefit From the Scheme

This plan is applicable to:

1. .All vehicle owners in Odisha if they have pending e-challans issued by, through an automated system or manually by traffic police, on or before 31 July 2025
2.  All offences from running a red light to a pollution challan and extra.

This plan does not apply to:

1. Challans which are already in the court system, that is one for which the prosecution report has already been submitted. 
2. More serious offences such as DRUNKEN DRIVING, hit-and-run, or involving an injury/fatal accident.

Also Read: UP Launches ‘Sadak Suraksha Mitra’ – A Step Towards Safer Roads

Fine Reductions Under the Scheme

The most attractive part of this initiative is the flat reduction in penalties. Instead of paying heavy fines, vehicle owners can now clear them at concessional rates.

Type of Violation	Regular Fine	OTS Fine
Red light jumping, using mobile while driving, wrong-side driving, dangerous driving	₹1,000 – ₹5,000	₹1,000 flat
Driving while medically unfit	Up to ₹1,000	50% of the fine
Air and noise pollution violations	Up to ₹10,000	50% of the fine

This means a driver who would normally pay ₹5,000 for dangerous driving can now settle it for just ₹1,000.

Why Vehicle Owners Should Act Quickly

The plan will only be valid for six months from its date of launch. So, after the six-month period:

• You will be required to pay the entire fine amount listed in the Motor Vehicles Act.
• Pending challans will affect vehicle registration renewal, ownership transfer, and fitness certification.
• Your name may be on the State’s blacklist for repeat offenders.
• Enforcement drives will become more stringent after this window, and it will be more difficult to avoid penalties.

In summary, the six-month window is a one-time respite if you miss it, you will most likely suffer much heavier consequences later.

Benefits for Vehicle Owners

1. Monetary Relief: A possible opportunity to make a payment of less than the amount owed and settle the dues.
2. End of an issue: If issuers of challans are followed with payments, no registered vehicle owner will have issues continuing to register vehicles, renew fitness certificates, or complete ownership transfers. 
3. Avoiding legal chaos: Unpaid challans may even turn into cases at provincial superior courts. This scheme will allow you an option to avoid them, if payments have been received. 
4. Peace of mind: Now vehicle owners can clear the past and drive with less stress.

Wider Impact of the Scheme

• On Courts: Reducing the number of challans will restore courts’ emphasis on serious traffic violations and on other matters.
• On Citizens: It promotes more responsible members of the public, and acting lawfully.
• On Road Safety: Clearing dues is just the first step. The actual objective is creating safer roads by ensuring that people abide by traffic rules.
• On State Revenue: Despite a reduced monetary fine, the program may provide more actual collections because people are more willing to pay a smaller monetary fine.

Steps for Vehicle Owners

1. Check Pending Challans

• Go to the Odisha E Challan Check portal or visit Parivahan.
• Input your vehicle number to view any pending challans.

2. Verify Eligibility

• Check if challans were issued prior to 31 July 2025.
• Confirm they have not been forwarded to the court yet.

3. Reduced Amount

• Your dues will show up on the portal.
• OTS will apply reduced fines.

4. Payment

• Pay online using either net banking, UPI or debit card.
• You may be able to make offline payment at certain RTOs.

5. Save Receipt

• Keep a copy for your record.
• This will eliminate any future claims that the challans were not cleared.

Conclusion 

The One-Time Settlement Scheme in Odisha is a mutually beneficial arrangement, the individual has an opportunity to pay lower amounts and settle their dues, while the state has an opportunity to clear out its backlog of challans while ensuring greater compliance. It might be a good time for vehicle owners to clear their past complaints.