New draft rules: Unpaid traffic e-challans may freeze vehicle, licence services

India's draft Motor Vehicles Rules propose blocking vehicle registration and driving licence services until unpaid e-challans are cleared.

The restriction applies after a challan attains finality—either uncontested within the prescribed period or after adjudication—and remains unpaid.

Vehicles with unpaid challans will be flagged as “Not to be Transacted” on the portal, and owners will receive electronic alerts.

The draft rules also mandate time-bound electronic adjudication of traffic violations and prescribe penalties for officials who delay decisions.

The Centre has invited objections and suggestions within 30 days before notifying the final rules.