AI-enabled traffic cameras: HC directs State govt. to clear dues within a month

The Kerala High Court on Friday (June 19, 2026) directed the State government and the Motor Vehicles department (MVD) to release, through Keltron, the dues payable to a private firm that installed and maintained AI-enabled automated traffic enforcement cameras on National Highways and arterial roads as part of the Safe Kerala Project.

A Bench of Justice Ziyad Rahman A.A., in an interim order, directed that the outstanding quarterly dues of ₹36 crore be paid within a month.

The firm contended that its dues had not been paid despite the project being implemented across Kerala and there being no dispute over the execution of the work, the operational status of the system or the invoices raised. It said it had been selected through a transparent tender process conducted by Keltron, the project management consultant.

The court observed that the payment due ought to have been released even in the absence of any direction from the court, as it was a contractual obligation.

The project was executed under a BOOT (Build, Own, Operate and Transfer) model, under which the firm was required to make the entire upfront capital investment for implementing the State-wide automated traffic enforcement infrastructure, with cost recovery structured through assured quarterly payments after the declaration of “Go Live”.

The firm said the project had been completed and operational readiness communicated in May 2022. However, the official “Go Live” declaration was delayed by nearly 15 months, causing severe financial prejudice to the petitioner firm.

A Public Interest Litigation (PIL) raising allegations against the project and its implementation had earlier been dismissed by the High Court. The project continues to remain operational solely because of the technical support, manpower deployment and maintenance efforts undertaken by the firm despite acute financial distress.

The firm contended that the State and the agencies concerned were deriving substantial public and financial benefits from the project, including a significant reduction in road accident fatalities and the generation of substantial enforcement revenue. The matter has been posted for hearing after a month.