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How to get your vehicle scrapped — a step-by-step guide

Everything you should know about getting your 15-year-old vehicle scrapped and deregistered.

October 15, 2021 / 05:07 PM IST

The Delhi Transport Department recently issued new rules regarding the usage of vehicles that are 15 years old. According to the new guidelines, once a petrol or CNG car crosses the 15-year mark, it will be deemed unfit to be driven in the National Capital Region, and no fitness certificate can reverse the ban and make it lawful for you to drive them. For diesel vehicles in Delhi, the cut-off period is 10 years. The policy stands at odds with the one issued by the Central government, and adopted by several states where a car older than 15 years (diesel, petrol or CNG) is allowed to run on public roads, provided it receives a fitness certificate after going through a series of tests. While nothing can qualify those cars to run in the NCR region, the car can acquire a No Objection Certificate and continue to operate in a state where, having passed a fitness test, it can legally run on public roads.

At present, the vehicle scrappage policy introduced by the government states that all private vehicles older than 15 years must undergo a fitness test, in order to renew the registration for a maximum period of 5 years, following which the same process must take place. In order to incentivise or rather to serve as a disincentive for retaining old cars, the cost of registration renewal is relatively high along with additional road taxes which may vary from state to state. So, what do car owners do when they do not wish to renew their vehicle’s registration? They send it to the scrap yard.

Benefits of vehicle scrapping

Upon producing a scrapping certificate, the former owner of the vehicle can get between 4-6 percent rebate on the total price of the vehicle. They can also avail a rebate in the road tax of their new purchase. There are also several indirect benefits of scrapping old vehicles, apart from the fact that they would help reduce air pollution. The scrap metal accumulated through the process, when recycled can be used to make new car components. Extensive scrapping and recycling are also expected to boost new car sales.

Running a car that’s older than 15 years can be a costly proposition, not only because you’re required to renew the registration every five years, but also because you’re required to pay an additional “Green Tax” as part of your road tax. Hence it’s more prudent for you, the owner, to get paid for the vehicle being scrapped, for a sum mutually agreed upon by you and the authorised scrap dealer. If the car isn’t in running order, the amount will be based on the weight and the value of the scrap metal. If the componentry is in running order, the dealer can sell individual components and pay you a higher amount for it, as only the metallic parts must be scrapped. The other rubber and plastic components must be segregated after the owner has given their consent.

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Locating a government authorised scrapping facility

According to the Ministry of Road Transport and Highways (MoRTH), a scrapping facility needs to follow several government-specified mandates to qualify as an Authorised Vehicle Scrapping Facility (AVSF). For example, an authorised scrapper needs to acquire a quality certification of ISO 9001 within 12 months of commencement of operations. The AVSF must be in possession of security certifications for IT systems in order to have safe access to VAHAN Database.

Upon identifying a government-approved AVSF, the car owner must produce the following documents:

  1. The Original Certificate of Registration (a photocopy will also do)

  2. Original fitness certificate following which the vehicle has been deemed unfit

  3. Authorisation from the registered owner

  4. A copy of the owner’s PAN card, Aadhar (or any other valid identity proof). Address proof such as electricity bill, water bill

  5. A government-authorised FORM-2 in which the owner or the owner’s authorised representative must fill, giving a copy to the authorised scrap dealer who in turn will furnish a ‘Certificate of Deposit’ as evidence of transfer of ownership

FORM-2 as issued by MoRTH (2)

The owner has to ensure that the car’s chassis number is removed before the vehicle is successfully demolished. The chassis number, along with photographic evidence of the scrapped vehicle must be produced at the RTO, in order to successfully de-register your car and receive a scrapping certificate. According to the guidelines set by MoRTH, the authorised scrap dealer is to keep a digital and physical copy of all documents pertaining to your vehicle. The owner is advised to inspect the scrapping process to ensure that the parts deposited cannot be re-used for illegal activities. According to the rules of the Ministry of Road Transport and Highways, the authorised scrap dealer is legally required to install CCTV cameras and keep a video record of the scrapping in their IT database.

Following this, the authorised vehicle scrapper will issue a digital “Certificate of Vehicle Scrapping” which will be uploaded to the National Register and VAHAN database. This will help update the state/UT records in getting the vehicle deregistered.

Deregistration at the RTO

Once the vehicle has been successfully scrapped, the RC along with the chassis number has to be submitted to the RTO. Once sufficient evidence (provided in the form of photographs of your scrapped vehicle, along with a letterhead from the authorised scrap dealer, with the scrapyard’s full address) is provided to the RTO, the de-registration process can begin. Along with this the vehicle owner must submit an affidavit stating that the car does not have any unpaid dues in terms of loans, insurance money or any pending court cases. Once these documents have been received and cleared by the Traffic Police and the National Crime Records Bureau, the RTO will run a final check through its own database, with regards to the purchase and sale of the car. Once a clear chit has been given, your vehicle will have been successfully deregistered.
Parth Charan is a Mumbai-based writer who’s written extensively on cars for over seven years.
first published: Oct 15, 2021 05:07 pm
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