Maharashtra clears 20% rebate on pending traffic challans under Abhay Yojana 2026

The state government has decided to give relief to motorists burdened by traffic fines and heavy arrears. The state Cabinet, chaired by the Chief Minister, formally approved the implementation of the 'Maharashtra Traffic Police Challan Abhay Yojana-2026'. The scheme offers a direct 20 per cent rebate on outstanding penalty amounts. Lakhs of vehicle owners in the state stand to gain substantial financial relief.

Under the provisions of the Motor Vehicles Act, 1988, fines are recovered from drivers and owners who break traffic rules. The 'One State One Challan' project and system has been running in the state since January 30, 2019. Under it, violators are penalised through e-challans, and the challan is sent to the driver's mobile phone. Various recovery measures are taken, yet public response has been relatively low.

To encourage recovery of fines and compliance with traffic rules, other states in the country have also offered concessions on fine amounts. Similarly, Maharashtra has decided to give a one-time rebate of up to 20 per cent on outstanding compoundable penalties. The scheme will be implemented in three phases.

The first phase covers compoundable challans issued between January 21, 2026 and October 31, 2026 and pending for recovery. A one-time rebate of up to 20 per cent will be given on the total outstanding penalty. The rebate will remain available for 30 days.

The second phase covers challans issued from November 1, 2026 onwards. If the driver or owner pays the penalty within 45 days of the challan being issued, a 20 per cent early-payment rebate will apply to all such challans. This rebate will remain in force for one year.

The third phase covers compoundable challans issued between January 30, 2019 and January 20, 2026 that have been filed in court for recovery. A rebate of up to 20 per cent will be given on the total outstanding penalty. This rebate will be available for 30 days.

After the Abhay Yojana period ends, action will be taken against vehicles that repeatedly violate traffic rules. In line with Rule 21 of the Central Motor Vehicles Rules, 1989 and Supreme Court directions, licences will be suspended, transactions involving the vehicle will be blocked and the vehicle may also be seized. The Cabinet also approved issuing a notification for the scheme.