Design of a vision-based traffic analytic system for urban traffic video scenes has a great potential in context of Intelligent Transportation System (ITS). It offers useful traffic-related insights at much lower costs compared to their conventional sensor based counterparts. However, it remains a challenging problem till today due to the complexity factors such as camera hardware constraints, camera movement, object occlusion, object speed, object resolution, traffic flow density, and lighting conditions etc. ITS has many applications including and not just limited to queue estimation, speed detection and different anomalies detection etc. All of these applications are primarily dependent on sensing vehicle presence to form some basis for analysis. Moving cast shadows of vehicles is one of the major problems that affects the vehicle detection as it can cause detection and tracking inaccuracies. Therefore, it is exceedingly important to distinguish dynamic objects from their moving cast shadows for accurate vehicle detection and recognition. This paper provides an in-depth comparative analysis of different traffic paradigm-focused conventional and state-of-the-art shadow detection and removal algorithms. Till date, there has been only one brief survey which highlights the shadow removal methodologies particularly for traffic paradigm. In this paper, a number of research papers containing results of urban traffic scenes have been shortlisted from the last three decades to give a comprehensive overview of the work done in this area. The study reveals that the only way to make a comparative evaluation is to use the existing Highway I, II, and III datasets which are frequently used for qualitative or quantitative analysis of shadow detection or removal algorithms. Furthermore, the paper not only provides cues to solve moving cast shadow problems, but also suggests that even after the advent of Convolutional Neural Network (CNN)-based vehicle detection methods, the problems caused by moving cast shadows persists. Therefore, this paper proposes a hybrid approach which uses a combination of conventional and state-of-the-art techniques as a pre-processing step for shadow detection and removal before using CNN for vehicles detection. The results indicate a significant improvement in vehicle detection accuracies after using the proposed approach.