UP may issue notification on fresh compounding fees next week

Uttar Pradesh may issue a fresh notification on the compounding fees in the light of the Motor vehicle (Amendment) Act, 2019 that came into effect in the country

Uttar Pradesh may issue a fresh notification on the compounding fees in the light of the Motor vehicle (Amendment) Act, 2019 that came into effect in the country from September 1.

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Offences that can be settled on the spot by paying a fee to avoid prosecution are known as ‘compounding’ offences.

The transport department has already sent a proposal for revision of the current rates of compounding fees with regard to compoundable offences and the government will issue a notification after the proposal is cleared by the Cabinet.

“The proposal for revised compounding fees is under consideration and the government may issue a notification giving effect to new rates next week,” transport department sources said. Presently, the challans are being compounded at the old rates revised in June last year.

The transport department, according to sources, has proposed the rates of compounding fees to be around 50% of the amount of fines prescribed in the new Act. However, new compounding rates are likely to be around the same as are applicable at present in the state because UP already made a hefty increase in the rates of compounding fees in June last in anticipation of the new fines.

“The proposed rates of compounding fees are not lower than the ones already in effect. On the contrary, they have been increased in some cases,” sources disclosed. They said the compounding fee for most common offences like not wearing helmet and seatbelt had been proposed to be Rs 500 as they are at present. The fine for no use of a helmet and seat belt under the new Act is Rs 1,000 per offence.