Section 136A MV Act | Supreme Court Directs States To Impound Vehicles With Unpaid E-Challans And Mandates Electronic Enforcement Compliance

"We want to convey something to the States/UTs/Authorities in a plain and simple manner. It is not just sufficient to keep issuing e-challans to the person who is alleged to have violated the provisions of the Act. Police may issue thousands and lakhs of such e-challans but the question is how do you recover the fine as sought to be imposed by way of those e-challans." Supreme Court, in a significant order dated 28 September 2026, has directed all States and Union Territories to enforce strict compliance with Section 136A of the Motor Vehicles Act, 1988, by linking the payment of traffic fines to essential vehicle services.

A bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan emphasized that the mere issuance of e-challans is insufficient without an effective recovery mechanism and ground-level enforcement.

Judicial Monitoring of Road Safety

The Court has been monitoring the implementation of the Motor Vehicles Act, 1988, and the Central Motor Vehicles Rules, 1989, for over 14 years. Expressing frustration over the sluggish pace of implementation, the bench noted that despite a series of judicial directions, the ground reality remains largely unchanged. The Court has now tasked the Amicus Curiae to prepare a comprehensive chart tracking the compliance status of all previous directions to ensure accountability.

Mandatory Linking of Fines with Vehicle Services

To address the staggering backlog of nearly Rs 49,000 crore in unpaid fines, the Court ordered that online services for vehicles with outstanding e-challans must be frozen. Authorities are directed to block the renewal of registration certificates, issuance of duplicate documents, and ownership transfers for such vehicles. Furthermore, the Court mandated that no fitness certificate should be issued, and the vehicle must be blacklisted on the 'Parivahan' portal until all pending traffic fines are cleared.

Court Mandates Vehicle Impoundment

The bench issued a stern directive that random vehicle checking must be conducted to identify non-compliant vehicles. If an e-challan remains unpaid, authorities are empowered and directed to take immediate steps to impound the vehicle. Additionally, the Court invoked the amended Rule 21(25) of the Central Motor Vehicles Rules, 1989, which provides for the suspension of driving licenses for habitual offenders—defined as those committing five or more traffic offences within a one-year period.

Overloading as a Safety Hazard

Addressing concerns regarding vehicle overloading, the Court clarified that overloading is a severe road safety hazard rather than a mere revenue issue. The bench directed that transport vehicles found exceeding permissible load limits must not be allowed to proceed until the excess load is removed, in line with the proviso to Section 194(1) of the Motor Vehicles Act. It explicitly stated that payment of penalties or additional fees cannot be treated as a substitute for compliance with statutory load limit obligations.

Electronic Enforcement and Pedestrian Safety

The Court directed the immediate implementation of the Ministry of Road Transport and Highways (MoRTH) Standard Operating Procedure (SOP) dated 28 October 2025. This includes the establishment of AI-enabled electronic enforcement systems capable of detecting twelve categories of traffic violations. Regarding pedestrian safety, particularly on high-traffic stretches like Delhi's Mathura Road, the Court warned the Chief Secretary of NCT of Delhi that personal appearance in court will be mandatory if previously issued directions for pedestrian crossings are not complied with forthwith.

Judicial Intervention in Bus Safety

Following a tragic accident involving a sleeper bus that resulted in multiple fatalities, the Court took cognizance of the need for urgent fire-safety protocols. It directed the Union of India and the States to respond to prayers for a uniform national checklist for sleeper and double-decker buses. This includes mandatory requirements for emergency exits, fire detection systems, and the functional status of Vehicle Location Tracking Devices (VLTD). The Court emphasized that transport vehicles must be detained at toll plazas if they fail to meet critical safety parameters or have significant unpaid challans.

The Court has signaled a shift toward a more proactive, technology-driven enforcement regime where the 'Parivahan' database acts as a gatekeeper for vehicle compliance. By mandating the integration of VAHAN, FASTag, and e-challan systems, the bench seeks to ensure that traffic violations carry immediate, tangible consequences, thereby upholding the primary objective of protecting the lives of citizens.

Date of Decision: 28 September 2026