CAG found thousands of mismatches in Odisha’s e-Challan records, including two-wheelers booked for seat-belt offences.
The audit also flagged three- and four-wheelers being issued helmet violation challans.
Odisha’s waste management records showed legacy waste transported using vehicles that included motorcycles and a non-existent vehicle.
Imagine receiving a challan for a violation your vehicle cannot commit — a two-wheeler booked for a seat-belt offence or a car penalised for a helmet violation. According to the latest Comptroller and Auditor General of India (CAG) report, such mismatches appeared in Odisha’s traffic records, exposing gaps in the state’s e-Challan system.
The audit found that between 2019 and 2024, thousands of e-challans were issued for offences that did not match the category of vehicles involved. It also flagged instances where public funds were paid for waste transportation records that involved vehicles incapable of carrying the stated quantity of material.
Wrong Vehicle, Wrong Traffic Challan
An analysis of VAHAN and e-Challan data for 2019-24 found that 2,988 cases were booked for driving without a seat belt, even though the vehicles involved were registered as two-wheelers.
Similarly, 4,786 challans were issued for helmet violations against vehicles registered as three- and four-wheelers.
According to the CAG audit, fines of ₹29.88 lakh were collected in the seat-belt violation cases, while ₹47.86 lakh was imposed in helmet violation cases.
“Analysis of VAHAN and e-Challan data pertaining to 2019-24 revealed that 2,988 cases were booked for driving a vehicle ‘without a seat belt’ and a fine of ₹29.88 lakh was imposed, whereas the vehicles were registered as two-wheelers, and 4,786 cases were booked for ‘not wearing a helmet’ and a total fine of ₹47.86 lakh was imposed, whereas the vehicles were registered as three- and four-wheelers,” the audit stated.
The CAG recommended corrective measures, including cancellation of incorrect e-challans and action against officials responsible for issuing penalties under incorrect sections.
The audit also examined the process of issuing driving licences in Odisha and found discrepancies between the category of vehicle applicants sought licences for and the vehicles used during driving tests.
Between April 2019 and March 2024, the CAG reviewed records from nine regional transport offices out of 35 in the state. It found that in 29,154 cases, the vehicle category mentioned for the licence differed from the one used during the driving test.
The report noted instances where applicants seeking a licence for a four-wheeler were tested on a two-wheeler and vice versa.
The audit also found that 318 licences were issued to 158 individuals for different vehicle categories, pointing to gaps in validation controls on the Sarathi portal.
The Odisha government told the CAG in June 2025 that incorrect entries by motor vehicle inspectors while recording test results had resulted in mismatches between requested vehicle categories and those used during tests.
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Waste Transport Records Flagged In Rourkela
The CAG also raised concerns over records related to biomining of legacy waste at a dump site near Biju Patnaik University of Technology in Rourkela.
The audit examined a 2022 agreement with an executing agency for biomining 61,156 metric tonnes of legacy waste. It checked vouchers for seven months involving payments of ₹5.81 crore and verified vehicle registration details through the Parivahan portal.
The audit found that 60,058 metric tonnes of waste was shown as transported using two motorcycles, an e-rickshaw, a car and a non-existent vehicle.
“For such transportation, ₹3.29 crore (57% of the test-checked amount) was paid to the executing agency,” the CAG said.
The audit stated that the absence of a control mechanism allowed such records to pass without proper verification.
DMF Funds For Foreign Education Under Scrutiny
The CAG also flagged expenditure from the District Mineral Foundation (DMF) fund in Keonjhar district.
The audit found that ₹6.06 crore was sanctioned in 2023 for course fees, health insurance and living expenses for five students pursuing a Master of Professional Engineering (Mining) course at Curtin University, Australia.
The CAG raised objections, stating that DMF funds were intended for the benefit of mining-affected areas and questioned the use of funds for higher education of a select group instead of creating infrastructure benefiting a larger number of beneficiaries.
The state government responded that the expenditure was made in good faith to empower local youth. However, the audit noted that it had not been established whether the five students belonged to villages directly affected by mining activities.
