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RTO Rules for Car Scrapping in India

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Want to say goodbye to your old companion? The scrap vehicle that has been sitting in your garage for too long? Well, that’s a good thought. Car Scrapping in India had been unorganized for a long time. However, with the implementation of the New Vehicle Scrappage Policy, things are finally falling in place. 

When you plan to sell car for scrap, there are many factors that you need to be aware of. There are distinct approaches that you can adopt to sell your scrap vehicle. One of the most convenient ways is to get in touch with an authorized scrap car dealer to let your old car “Rust in Peace.” You must also have knowledge of the basic rules and regulations to sell car for scrap. 

RTO is an important authority that is involved in the process of Car Scrapping in India. RTO has laid down a set of rules and regulations to deal with scrap vehicles in an appropriate manner. In India, commercial and personal vehicles older than 15 and 20 years respectively are considered ELVs and must be mandatorily scrapped. No matter if your old car is in running condition, you still can’t keep it running on the road if it doesn’t pass the fitness test. 

Re-registering or Scrapping – Which Option to Choose?

You must be wondering – when it’s illegal to run scrap vehicles on the road, what can be possibly done? Well, let’s answer this for you. 

Scrap vehicles can be transferred to other states for re-registration before the expiration of the Registration Certificate (RC). The RTO does not review the RC if your vehicle turns older than 15 years. When a car owner transfers his vehicle to a new state, it is required to be re-registered with the new RTO, and this needs to be recorded in the old RTO too. If this procedure is not followed, your scrap vehicle is more likely to be used for illegal activities. 

If you aren’t keen on transferring your scrap car to another state, a viable option to skip the whole hassle is – to scrap it. This step will ensure that scrap vehicles are recycled, and you will also contribute to making mother earth a better place. Additionally, the chances of your scrap car being used for illegal/unauthorized activities will be entirely eliminated. You can choose any way that you think will be best suited to your situation.

Already have some questions popping in your head? Want to know more about Car Scrapping in India? Let’s get through some of the questions and answers one by one!

Q: What happens to the Chassis Number?

A: It is taken out before the scrap car dealer sends it for recycling.

Q: Does a registered scrap car dealer physically inspect the scrap vehicle and quote a price based on the vehicle’s weight?

A: Yes, this is absolutely true. The scrap car dealer also removes various car parts and segregates them.

Q: Can scrap vehicle owners negotiate the price they get for different car parts?

A: Yes, this is possible. However, it depends on the condition of those parts and some other factors. 

Q: Should the insurance company not be informed about car scrapping?

A: No, this won’t be right. It is necessary for the vehicle owner to keep the insurance company informed if you sell car for scrap.

Q: Should a car owner keep the respective RTO informed about scrapping their vehicle?

A: Yes, this step will ensure that when you sell car for scrap, it is disposed of in an environmentally sound, legal manner. 

Now since you’re aware of the basic ways of dealing with your scrap vehicle, let’s know in detail about the RTO rules and regulations for Car Scrapping in India!

RTO Rules for Car Scrapping in India 

  • The first step for you, as a car owner, is to write a letter to the authorized RTO about scrapping your car.
  • You will also need to surrender the original copy of the RC of the scrap car along with the chassis number. The scrap car dealer will cut it out at the time of scrapping. It needs to be given away to the RTO (acts as a part of the historical records.)
  • A letterhead (with scrap car dealer’s confirmation) with the complete address is also required. At this stage, the pictures of the scrapped vehicle can be submitted. 
  • You should additionally submit an affidavit – with the application for scrap and de-registration. This affidavit should mention that – your car is not under any insurance claims, loans, or pending court cases. It will also confirm that your scrap vehicle is/has not been involved in thefts. 

After receiving diligence reports from – the National Crime Records Bureau (NCRB) and Traffic Police, the RTO verifies the submitted documents and proceeds with further steps. Verification is also done for all the records that are maintained at the RTO office regarding the purchase and sale of the car. When all the records are found to be satisfactory, only then will your car be deregistered by the RTO.

Well, above was a glimpse of how the RTO operates and gets your old vehicle scrapped. Further are some FAQs that would solve your queries.

Additional FAQs 

Q: Is it compulsory for a vehicle owner to submit the original copy of the RC to the scrap car dealer?

A: No, it’s not compulsory. Submitting the photocopy of the RC should be enough. However, the original copy needs to be submitted to the respective RTO.

Q: What happens to the Registration Number of the Scrapped Vehicle?

A: Once the respective RTO completes the scrapping formalities, the registration number of your scrap vehicle is free for use by someone else. 

Q: Is the car owner allowed to take photos and videos of their scrapped vehicle?

A: Yes, you will be within the legal rights to take such proofs for a smooth process at the RTO at the later stages. Also, you will be assured that your scrap vehicle was indeed scrapped and won’t be used for illegal activities.

Q: Does the police get involved in the vehicle scrapping process?

A: Yes, they can choose to view and also record the vehicle scrapping process. 

Q: Does the scrap car dealer keep the certificate/challan of your scrapped vehicle with themself?

A: No, they cannot do so. Legally, you get the certificate/challan after submitting the required documents like identity, ownership, residence proof to the scrap car dealer. 

Hope you have got some clarity about the process of Car Scrapping in India and the role of the RTO in it. If you still have further questions, the team at Scrap Yard India will be more than happy to help you out! Get in touch with SYI’s team or book a consultation today by clicking here.

About Scrap Yard India

Getting all the formalities at RTO seems like an exhausting job? Don’t wish to waste your energy and time in going through the entire process. Well, don’t do it. Wondering why? It’s because we will take care of everything for you. 

Throughout, SYI has helped PAN India citizens to get their vehicles scrapped in a legal and convenient manner. Our transparency and way of working have made us a go-to-name in this business line. Doing all of it, for you, at the comfort of your home is what we aim for. The more hassle-free the experience, the happier our team is. 

We want to ensure that every customer associated with us gets to enjoy various perks announced in the “New Vehicle Scrappage Policy.” A smarter choice to deal with your scrap vehicle is to get scrapped with a Registered Vehicle Scrapping Facility. The longer you wait, the lower will be the value that you fetch for your old companion. 

So why are you waiting? Sell car for scrap and earn cash with us. We will ensure that you get the best value that your scrap vehicle rightfully deserves!! 

A message from SYI’s team – Reduce, Recycle, Repeat!


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