Motorists violating several traffic rules will soon face a different penalty process. The Union Ministry of Road Transport and Highways has withdrawn the provision of collecting fines on the spot (compounding) for around 23 categories of traffic offences under the Motor Vehicles Act.
Under the revised system, enforcement officers will only issue a challan for these violations. The matter will then be referred to a court, and any penalty will be imposed only after a judicial order. The new rules will come into effect from August 15, 2026, following a notification issued by the Ministry on July 24, 2026.
The changes stem from amendments made to Section 200 of the Motor Vehicles Act through the Public Trust Act, 2026, which was passed by Parliament on April 8, 2026. As a result, several offences that were previously eligible for on-the-spot settlement have been removed from the compounding list.
Fewer Offences Eligible for Immediate Settlement
The Motor Vehicles Act provides penalties for approximately 36 types of traffic violations. Earlier, more than 30 of these offences could be settled immediately by paying a fine. Under the amended rules, nearly 23 offences will now require court proceedings before any fine can be recovered.
Warning for First-Time Violations in Certain Cases
According to the new framework, first-time offenders in cases related to air and noise pollution will receive a warning. A penalty will be imposed only if the violation is repeated.
Similarly, vehicles found operating without registration or fitness certificates will receive a warning for the first offence, while repeat violations will be dealt with through court proceedings and penalties.
Violations Covered Under the New System
The revised provisions will apply to offences such as:
Driving without vehicle documents
Unauthorized vehicle modifications
Air and noise pollution violations
Driving without registration
Driving without a valid fitness certificate
Operating without a permit
Violating permit conditions
Overloading vehicles
Carrying luggage beyond prescribed limits
Carrying excess passengers
Not wearing a seat belt
Riding without a helmet
Honking in prohibited zones
Using modified silencers
Driving without valid insurance
Settlement Process Likely to Take Longer
Previously, many of these offences could be resolved immediately by paying a fine at the spot. Under the new system, authorities will only issue a challan, and the case will be forwarded to court. The fine will be payable only after the court passes an order.
Officials believe the revised procedure could increase the time required for disposal of cases and may also raise compliance costs for offenders due to court-related processes.

