Maharashtra Plans One-Time Settlement Scheme For ₹2,500 Crore Pending Traffic Fines

With outstanding traffic fines across Maharashtra surpassing Rs 2,500 crore — including over Rs 1,000 crore in Mumbai alone — the state’s Transport Department is preparing to roll out a one-time settlement (OTS) scheme aimed at recovering long-pending dues from vehicle owners.

According to sources, the proposal is under active consideration. The scheme could provide significant relief to defaulters while helping the state generate much-needed revenue.

Massive backlog in Mumbai

According to official data, since 2020, Mumbai has accumulated nearly Rs 1,817 crore in unpaid e-challan fines, of which only Rs 817 crore has been recovered so far. With a large portion of vehicle owners reluctant to pay, authorities are exploring alternative strategies to fast-track recovery.

Proposed waivers for smaller vehicles

Sources say the department is contemplating a substantial waiver for smaller vehicle categories. According to the proposal, two-wheeler and auto-rickshaw owners may be allowed to settle dues by paying just 25% of the total pending amount — effectively a 75% waiver.

Tiered relief for different vehicle categories

"The amnesty proposal, now with the Transport Secretary for review, also includes provisions to incentivize timely payments in the future. Under the suggested framework, violators who clear their fines within 15 days of issuance could receive a 50% waiver, encouraging prompt compliance." said source.

Incentives for timely payments

The proposed scheme would be structured to offer greater relief to owners of budget and low-cost vehicles, while owners of luxury or high-end vehicles may receive proportionally smaller waivers. The state is reportedly considering a tiered structure based on vehicle type and value to ensure fairness and maximize collections.

Learning from past attempts

This is not the first time the government has attempted to address the growing backlog of unpaid traffic fines. Previous Lok Adalats offered up to 50% relief but saw limited participation. The new OTS scheme is being designed to be more structured and appealing to a wider base of defaulters.

Dual objectives of the scheme

Officials say the amnesty scheme’s dual objective is to provide relief to citizens and generate substantial one-time income for the state. With lakhs of vehicles under default and enforcement proving challenging, the Transport Department sees this as a practical solution to address both enforcement gaps and fiscal needs.

Potential rollout in coming months

"If approved, the scheme could be rolled out in the coming months, potentially bringing relief to thousands of vehicle owners and clearing a significant portion of the state’s mounting fine backlog," said an official of the Transport Department.