Maharashtra rolls out Abhay Yojana: up to 20% off pending traffic challans in three phases

Motorists in Maharashtra who have left traffic fines unpaid now have a chance to settle them at a lower price. The state cabinet, chaired by Chief Minister Devendra Fadnavis, has cleared the Maharashtra Traffic Police Challan Abhay Yojana-2026, which offers a discount of up to 20 per cent on eligible pending fines. The cabinet also approved the notification of the scheme at the same meeting.

Fines are levied on drivers and vehicle owners who break traffic rules under the Motor Vehicles Act, 1988. The One State One Challan project has operated in Maharashtra since January 30, 2019, and violators are penalised through e-challans, with messages sent to the mobile phones of the people concerned. Officials have tried several ways of recovering the money, but public response has been very poor. The numbers show how deep the gap is. About 1.57 crore challans have been issued since the e-challan system began in January 2019, carrying fines of Rs 1,577 crore. Only Rs 185 crore, roughly 12 per cent, has come in. More than 99 lakh e-challans are still unpaid, with fines adding up to Rs 1,392 crore, a figure that includes challans already sent to court for recovery.

Other states have used discounts to bring in dues and nudge people towards following the rules, and Maharashtra has now chosen the same route with a one-time concession on fines that can be settled.

The scheme will run in three phases. The first covers challans issued between January 21 and October 31, 2026 that are still pending. A one-time discount of up to 20 per cent on the total outstanding fine applies, and motorists get 30 days to pay.

The second phase applies to challans issued from November 1, 2026 onwards. If the vehicle owner pays within 45 days of the date the challan was issued, a 20 per cent early-payment discount will be given. This concession will stay in force for one year.

The third phase is for challans issued between January 30, 2019 and January 20, 2026 that have been filed in court for recovery of the fine. Here too the discount can go up to 20 per cent of the total outstanding amount, and the window is 30 days. The filings describe these challans in different terms, calling them negotiable, transferable or compoundable.

Once the scheme period is over, the state plans to get tougher on vehicles that repeatedly break traffic rules. Under Rule 21 of the Central Motor Vehicles Rules, 1989 and directions of the Supreme Court, action can include suspending driving licences, restricting transactions linked to the vehicle and seizing the vehicle.

The decision has drawn a welcome from the transport sector. Bal Malkit Singh, adviser and former president of the All India Motor Transport Congress, praised the move. He wants every eligible category of commercial vehicle, and all pending challans, brought under the scheme. He also said paying fines should be simple and transparent and should be possible within the stated period, and asked that transporters be given full time and clear guidelines.

How much relief the scheme actually gives motorists with pending e-challans remains to be seen.