Government will digitize vehicle scrapping process easier, issue draft notification

Certificate will be valid for 2 years

Ministry of Road Transport and Highways (Ministry of Road Transport and Highways) has released the draft notification related to Motor Vehicles (Registration and Vehicle Scraping Facility Amendment) Rules, 2022. These are amendments to the Motor Vehicles (Registration and Vehicle Scraping Facility) Rules dated 23 September 2021, which lay down the procedure for setting up Registered Vehicle Scraping Facility (RVSF). These amendments have been made to simplify and digitize the process of vehicle scraping for all stakeholders of the ecosystem, such as vehicle owners, RVSF operators, dealers, regional transport authorities etc. These amendments have been made based on the feedback received on the rules.

The processes are time bound to ensure ease of doing business. The draft notification provides for vehicle owners to apply for vehicle scrapping digitally and all applications for vehicle scrapping will have to be submitted digitally.

RVSF will help vehicle owners like this

RVSFs will act as a facilitation center to help vehicle owners to apply for scrap of their vehicles digitally. The vehicle owner has specified the necessary checks to be done from the ‘Vahan’ database before submitting the application.

These investigations include- hire-purchase, submission of seize or concept agreement of the vehicle, National Crime Records Bureau records with no criminal record against the vehicle, no outstanding dues on the vehicle and blacklisting of the vehicle by regional transport authorities. There is no record of. Applications will not be submitted for vehicles failing any of these tests.

Draft Notification issued for Registration and Functions of Vehicle Scrapping Facility

These are amendments to the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility)Rules dated 23rd September 2021

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Some of the salient features of the amendments are as follows:

Initiation of undertaking by the vehicle owner and RVSF operator at the time of submission of the vehicle will ensure that there is transparency in the responsibility of the vehicle before and after it is submitted for scrapping.

Certificate will be valid for 2 years

Inclusion of more details in the Certificate of Deposit relating to the vehicle submitted for scrapping, so as to enable transparency in the business of the said certificate. The above certificates will be available digitally to the vehicle owners and will have a validity period of 2 years.

Introduction of Transfer Certificate of Deposit to ensure that consumers who obtain Certificate of Deposit through electronic trading have digital proof of transactions.

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