Madhesh Province Auto Dealers Demand Waiver of “Impractical” Fines Amid Service Shutdown

30th January 2026, Kathmandu

Automobile entrepreneurs in Madhesh Province have called on the provincial government to immediately address the “impractical” fines being levied on vehicle owners.

Madhesh Province Auto Dealers Demand

The demand comes as transport services remain crippled following the widespread vandalism of government offices during the recent Gen-Z protests.

Key Highlights

Memorandum Submitted: The Janakpurdham Chamber of Commerce and Industry, along with local automobile showroom owners, submitted a formal memorandum to Chief Minister Krishna Yadav.

The Core Issue: Due to the destruction of server equipment and physical files at Transport Management Offices, online and offline vehicle transfer (ownership transfer) services have been halted.

Financial Burden: Nepalese citizens and dealers are being forced to pay late fines of up to Rs. 10,000 per vehicle because the government has failed to resume services, even though the delay is on the administrative side.

Inequality in Service: While other provinces have resumed online transfers, Madhesh Province remains lagging, further frustrating local stakeholders.

Vandalism Cripples Transport Infrastructure

The crisis stems from the violent protests where critical server equipment was looted, and various transport offices were set on fire. According to reports from the Madhesh Province Police, the unrest caused damages exceeding Rs. 73 million.

Specifically, the arson attack on the Department of Transport Management destroyed:

• Digital records linked to the Nagarik App.

• Physical “Blue Books” (registration logs) and driver’s licenses.

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• Printing machines for licenses.

Because the system is offline, dealers cannot process name transfers for sold vehicles. Under current regulations, a delay in transfer triggers heavy daily fines, which the dealers argue is a “penalty for a crime the public did not commit.”

Demand for Immediate Intervention

Krishna Kumar Dixit, a member of the Janakpurdham Automobile Dealers, emphasized that the lack of online services is unique to Madhesh Province. “We are being penalized for the government’s inability to restore its own servers,” Dixit stated.

The delegation has demanded:

A complete waiver of all fines accumulated during the period when transport offices were non-functional.

Immediate restoration of the online name-transfer system.

Clear guidelines on how to claim records for vehicles whose physical documents were destroyed in the fires.

Government Response

Upon receiving the memorandum, Chief Minister Krishna Yadav assured the delegation that he would coordinate with the Secretaries of the Ministry of Finance and the Ministry of Labour and Transport. He pledged to find a legal and administrative solution to relieve the financial burden on entrepreneurs and the general public.

As the automobile sector continues to struggle with the aftermath of the protests and a sluggish economy, the waiver of these fines is seen as a crucial step toward the recovery of the Nepalese auto market in the region.

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