In this paper, a Smart Transport System using Automatic Number Plate Recognition (ANPR) of a vehicle is proposed. License plate number of a vehicle is recognized to check the details of the vehicle like the make, type of the vehicle, checking for traffic rule violations and to collect the toll in hospitals, highways, tech parks, paid parking slots of shopping malls, and supermarkets in real time. This paper proposes a system implementation consisting of modules to capture the video of the vehicle, segmentation of video into frames, optical character recognition (OCR) to recognize the characters present on the number plate using Canny edge detection. After capturing the image, it is processed and the extracted characters are compared with the results in the database. A sample RTO database with all the required information about the vehicle would be created for the purpose of comparison. The obtained result after the validation of the vehicle number plate with different parameters has to be displayed from the master PC onto the monitor which lets the defaulter know of his/her violations. This is done using IOT. Once the violations have been displayed, the corresponding amount would then be deducted from the defaulter’s bank account.