In a move aimed at streamlining traffic enforcement and reducing the backlog of court cases, the Odisha government’s Commerce and Transport Department has issued a new notification allowing the compounding of select motor vehicle offences committed on or before July 31, 2025.
The scheme, effective immediately, permits offenders to settle fines at reduced rates instead of facing prosecution. This is provided no prosecution reports have been submitted to the courts.
The notification, dated October 9, 2025, builds on a previous directive from September 17, 2025. It invokes powers under sub-section (1) of Section 200 of the Motor Vehicles Act, 1988 (as amended in 2019), to authorise compounding for seven specific violations. This initiative is expected to benefit thousands of vehicle owners and drivers across the state. It offers a quicker resolution to pending challans.
Under the scheme, the prescribed penalties under the MV Act remain unchanged. However, the compounding fees—payable to avoid court proceedings—have been set at approximately half the original fine amounts in most cases.
Here’s a breakdown of the eligible offences and their respective fees:
- Section 180: Allowing an unauthorised person to drive a vehicle without a valid driving license (DL). Penalty: Rs 5,000; Compounding fee: Rs 2,500.
- Section 181: Driving a vehicle without a valid DL. Penalty: Rs 5,000; Compounding fee: Rs 2,500.
- Section 194 B (1): Driver or passenger not wearing a seat belt. Penalty: Rs 1,000; Compounding fee: Rs 500.
- Section 194 C: Carrying more than one pillion rider on a two-wheeler. Penalty: Rs 1,000; Compounding fee: Rs 500.
- Section 194 D: Driving or riding a two-wheeler without a helmet. Penalty: Rs 1,000; Compounding fee: Rs 500.
- Section 194 E: Failing to provide way for emergency vehicles (such as ambulances or fire trucks). Penalty: Rs 10,000; Compounding fee: Rs 5,000.
- Section 196: Driving without valid insurance. Penalty: Rs 2,000; Compounding fee: Rs 1,000.
The directive emphasises that this compounding option applies only to offences where prosecution reports (PR) have not yet been filed in designated courts. Offenders with ongoing court cases will not qualify.
The scheme comes amid ongoing efforts by the Odisha government to modernise transport governance, including digital challan systems and awareness campaigns on road safety.
