The Kerala Motor Vehicle Department is overhauling its approach to fines, also scrapping the controversial 'blacklist' term for vehicles with unpaid fines. Instead of being 'blacklisted', vehicles will face application rejections if fines aren't settled, and services will be denied with a 'Not to be transacted' notice.

The move follows public outcry against the blacklist practice, which affected around 15 lakh vehicles. Offences included AI camera-detected violations and those found during vehicle inspections. While only road tax will now be collected from these vehicles, other fees and applications will be declined.

While privately registered vehicles, which require re-registration every 15 years, are less affected by this crisis, taxi vehicles needing re-registration every one to two years must urgently comply. Additionally, vehicles with numerous unpaid fines will face legal action in the near future as the MVD is set to direct them to court.

Some vehicles are trapped in arrears due to faults of the MVD. Vehicle owners are now burdened by the authorities' failure to collect a service charge of Rs 105 from contract carriage vehicles that had been crossing the checkpoint.

Although fines can be paid online through e-challan, one previously needed to visit the respective offices to obtain a login username and password for paying the service charge, cess, and compounding fee. The MVD is currently transitioning to accept fines online. Instead of requiring owners to visit the office, they are now sending usernames and passwords to the vehicle owner's registered mobile number upon an email request. Fines must be paid online within the specified timeframe. 

Approximately 60 percent of State contract carriage vehicles owe service charges at various checkpoints, leading to complexity often exploited by intermediaries.