We discussed many different techniques apart from this. One idea which was shared is that Number Plates should be implemented a small RFID chip which will broadcast the information whenever an RFID scanner is detected. But in this case , for the sake of example, we cannot just install RFID's in all the number plates in Pakistan, factors are COST,TIME and our jahil awam. This is what NYC police has thought off I think because they have installed this machine on Police Vehicles and Police Posts only that is they have skipped the idea of penalizing the END USER instead they have opt for installing this mechanism only on THERE SIDE. In RFID's case both the parties have to be affected for a CHANGE which is again a debatable.
Khair after discussion the basic idea of HOW TO MAKE SUCH A SYSTEM. Well let me share with you that its easy (in terms of computer science). A simple image processing algorithm and filters can do the job of NUMBER PLATE IDENTIFICATION. The next step is to cross check the number plate with the available database of that CITY, DISTRICT or PROVINCE.
A problem was shared which states that a single number can be and is being used on different cars of same make and model. To counter this problem what I have in my mind is that a captured image of whole car should be stored. When another car of same make and model but with different color is detected, it should be reported. But in this case our computer system will have to continously analyse and store every image of vehicle and cross check it in database.
The overall project is excellent if implemented in RIGHT CAPACITY. InshaAllah very soon I will have a group of students working on it. 
What is your input after reading this all?
