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Vehicle Scrapping in India – Know How an RVSF Operates

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Vehicle Scrapping in India has gained momentum after the announcement of the New Vehicle Scrappage Policy earlier in 2021. Even though India’s Automotive Market is one of the largest in the world, the process of scrapping junk vehicles wasn’t organized. But thanks to the initiative taken by the government, the scenario will no longer be the same. The New Vehicle Scrappage Policy has many perks to offer. The incentives offered for a scrap vehicle are encouraging the citizens of India to sell car for scrap. On the other hand, end of life vehicle recycling is helping the automotive industry. 

When you sell car for scrap, don’t you wonder what happens to your scrap vehicle? Don’t you want to know how a Car Scrap Yard Operates? Well, if you want to know the entire process, you have landed at the correct platform. Right from dismantling your scrap vehicle to the end of life vehicle recycling – here is the guide that will spill the beans. Let’s discover the interesting process of vehicle scrapping in India together!

A Sneak-Peek at Terminologies related to Vehicle Scrapping in India

Before we begin, allow us to make you familiar with a few terminologies pertaining to Vehicle Scrapping in India. Please have a look at them yourself.

1] “Registered Scrapper” refers to a person, firm, trust/company, society that owns and operates a Registered Vehicle Scrapping Facility (RVSF)

2] RVSF refers to any establishment holding “Registration for Vehicle Scrapping in India” for dismantling and scrapping operations. 

3] “Certificate of Deposit” recognizes the transfer of ownership – from a registered Scrap Vehicle Owner to an Authorized Scrap Car Dealer for further treatment of an End of Life Vehicle.

4] “End of Life Vehicle (ELV)” refers to all scrap vehicles that are no longer legally registered or are declared unfit for use by Registered Automated Fitness Centers in India. A vehicle will be considered ELV on cancellation of registration or due to damages suffered from fire, riots, natural disaster, accident, etc.

5] “Certificate of Vehicle Scrapping” recognizes the approval issued by an RVSF for the final disposal of a Scrap vehicle. 

6] “Final Disposal” means that a scrap vehicle is no longer capable of being used. The cut piece of the Chassis Number and the disposal of the Vehicle’s Engine in accordance with CPCB Guidelines is evidence for the same.

Process followed by RVSF for Vehicle Scrapping in India

Vehicle scrapping in India must be done by a Registered Scrapper only. This process needs to be carried out in accordance with the outline mentioned by legal authorities for scrapping all ELVs except abandoned/impounded vehicles. The following is a step-by-step guide that will help you understand everything.

1] The Registered Vehicle Owner or his Authorized Representative must hand over the scrap vehicle along with an application (as per Form-2.) Then the designated Collection Center or the Registered Scrapper can process the scrap vehicle for deposit and treatment purposes. 

Note: Mandatorily, the RVSF must publish the list and details (contact number, address, etc.) of its designated scrap vehicle collection centers/car scrap yard in the public domain. If there is any discrepancy, you should not choose such a scrap car dealer. 

2] In scenarios where the scrap vehicle doesn’t have a valid registration, the Registered Scrapper or its designated Vehicle Scrapping Centre must check crucial details. They must match the identity of the Registered Vehicle Owner as per the State Registration Portal or VAHAN database. The details must match with the person who hands over the scrap vehicle. 

After getting the desired information, the vehicle will be received by the RVSF, and a valid receipt will be issued through the digital platform linked to the State Registration Portal / VAHAN database.

Note: The receipt will be issued only when the scrap vehicle is accepted by the RVSF and once all records are verified.

3] If any vehicle is impounded by an Enforcement Agency, then it must be handed over to the Registered Scrapper. Duly following all the prescribed procedures set by the State Government or Union Territory Government is mandatory in such cases.

4] From the NCRB Portal Database of Stolen Vehicles, the RVSF must verify the records for the automobile produced for scrapping and end of life vehicle recycling. Only if the vehicle is found to be “Not Stolen” then RVSF will initiate the process of vehicle scrapping. Once the end of life vehicle steers clear, the RVSF will be absolved from all the liabilities. 

Note: The concerned RVSF must maintain the Electronic Record of the Verification.

5] Along with Form-2, The Registered Scrapper will need the below-listed documents from the Scrap Vehicle Owner or his Authorized Representative – 

  • Original Copy of Vehicle Registration
  • Authorization from the Registered Scrap Vehicle Owner
  • Death Certificate of the Registered Scrap Vehicle Owner (In case of Inheritance, Proof of Succession will be required)
  • Order Confirming the Sale of Scrap Vehicle or a Certificate in a Public Auction (in Owner’s favor) that is duly signed by the Authorized Auctioneer.
  • As per Clause 4 of Form-2, an “Undertaking” from the Scrap Vehicle Owner or the Authorized Representative is required (It should indicate that the scrap vehicle has no Pending Litigation or Criminal Record.)

6] With respect to the Registration Certificate of a Motor Vehicle [under sub-section (2)] – the hypothecation, lease, or hire-purchase agreement must be verified and duly discharged. 

7] The Registered Scrapper must collect some Self-certified Document Copies either from the Owner or the Authorized Representative. The list of those documents is as follows – 

  • PAN Card Copy of the Owner
  • Crossed Cheque (of the Bank Account) of the Owner.
  • Authorized Representative’s Identity Proof (if applicable.) Documents such as Aadhar Card, Voter Card, Passport, Driving License, Photo Identity Card will be considered valid.
  • Address Proof of the Owner. Valid documents include Water Bill, Electricity Bill, Piped Cooking Gas Bill, Landline Telephone Bill, etc.
  • Digital Photograph of the Person (either Owner or Authorized Representative) who will be physically handing over the End of Life Vehicle to the RVSF OR
  • Photograph of the Owner or Authorized Representative countersigned and duly pasted in Form-2.

8] The Registered Scrapper must return the second Form-2 without fail. It should be duly receipted to the Scrap Vehicle Owner or his Authorized Representative. 

Note: As evidence, the Certificate of Deposit is issued to transfer ownership of the concerned scrap vehicle. 

9] The RVSF established in a State has the Legal Authority to accept and scrap end of life vehicles registered in any case of the State or Union Territories. This will be under the jurisdiction pertaining to any Registering Authority. 

Irrespective of the location of a Scrap Vehicle Registering Authority, the entire process will be smooth and mandatorily linked with VAHAN Portal on a PAN India basis. 

10] For the Scrap Vehicle Owner, “Certificate of Deposit” will be a necessary/sufficient document to avail the benefits and incentives as per the New Vehicle Scrappage Policy. From time to time, these benefits and incentives may be promulgated.

11] The Certificate of Deposit is tradeable. It will be stamped as “Cancelled” once it has been utilized. This will be done by the concerned Agency that is providing the benefits to the Holder of the Certificate. 

Note: On VAHAN Portal, the RVSF will match the entries in the above regard. The validity of the Certificate of Deposit will be 1 year (from the date of issue.)

12] The Registered Scrapper must digitally pay or remit the agreed consideration for the scrap vehicle by an Account Payee Cheque. This should be done after receiving acceptance from the RVSF or any of its collection centers. Also, obtaining the Receipt from the Vehicle Owner or his Authorized Representative for the records is mandatory.

13] The Registered Scrapper will be responsible for maintaining all the evidence pertaining to every scrap vehicle. As physical evidence, for 3 months, the RVSF will have to take self-custody of the cut piece of a vehicle’s Chassis Number. For digital proof, the custody has to be extended to 6 months thereafter. This will be valid from the date of issue of the “Certificate of Vehicle Scrapping.”

14] The registered Car Scrap Dealer must maintain a scanned, computerized copy along with a physical copy of all the necessary documents. This paperwork has to be digitally certified by – 

  • The concerned Registration Officer OR
  • The Designated Officer OR
  • The Registered Vehicle Scrapping Facility (RVSF)

These documents will further be used for maintaining records and for inspection purposes. This will be amended from time to time or for a particular period as per the prerequisite of the Companies Act, 2013.

15] For End of Life Vehicle Recycling, a Registered Car Scrap Yard has to ensure the removal or disposal of hazardous parts without fail. All this must be done following the extant guidelines set by the law. 

16] In a Car Scrap Yard, any vehicle shall not be scrapped until meeting the essential criteria. This includes draining and collecting the antifreeze, oil, and other fluids and gases. As per the strict, sound environment principles, they should only be stored in Certified Standard Containers.

17] A detailed yearly report of the vehicles scrapped must be furnished – 

  • As per Form-3 OR
  • As prescribed by the Transport Department of any State or Union Territory Government in India

So this is how your scrap vehicle is put to pasture. Team SYI hope that you found the above information informative. For more such articles, stay tuned with us!

About Scrap Yard India

We are a team of professionals who help scrap vehicle owners connect with Registered Vehicle Scrapping Facilities all across India. To date, we have successfully scrapped thousands of scrap vehicles and processed them for end of life vehicle recycling. 

If you wish to sell car for scrap, earn extra cash and enjoy the perks of the New Vehicle Scrappage Policy, choose us. As your scrap car dealer, we will get you the best scrap prices and complete the entire vehicle scrapping process on your behalf – while you sit and relax at your home. To know more about how we can serve you, please contact us and say goodbye to all of your scrap vehicle worries!

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


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– New Vehicle Scrappage Policy 3+

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