Regional Transport Office (RTO) Rules for Car Scrapping in India

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Updated on Oct 31, 2022

RTO Rules for Car Scrapping in India

Did you know that cars older than 15 years cannot be used anymore? Yes, you read that absolutely right! Is your car nearing 15 years? Well, you can transfer it to a new state for a re-registration but the process is going to be lengthy and you will be hassled for sure. The second option that you can try is scraping the car. Sounds good? Let us today talk about scraping old cars.

Scrapping in India is not at all organized as compared to the sale of used cars. As the cars get older, they start actively contributing to increasing the pollution level. Lately, a National Green Tribunal order was passed which banned cars that are older than 15 years in the national capital. The Regional Transport Offices (RTOs) have also put an end to re-registering these old cars and rather they check the fitness of the vehicles.

So, now what do the car owners do with their vehicles that are older than 15 years?

If you own a car that has already completed its 15 years, you can either sell it or transfer the vehicle to a neighboring state. And if you are choosing the transfer to some other state option, you need to do it before the Registration Certificate (RC) expires. If you fail to do so, the RTO will not renew the Registration Certificate if the car is more than 15 years old.

As you transfer the car to a different state, the vehicle will then be re-registered at a new RTO. This registration will have to be then updated in the records of the previous RTO. Not doing so may result in the car being used for illegal reasons and activities. And if you neither want to sell the car nor want to transfer it to another state, you can then opt for car scrapping.

Car Insurance Policy

Things you should know about car scrapping

Transferring your car to a different state can be full of hassles. This is why many people choose to scrap their cars. Scrapping old model cars is a safe option. This means the car will be chopped into small pieces and then it will be taken for recycling. Doing this ensures that the vehicle cannot be used for any illegal activities.

Here are some of the things that you need to know about the scrapping process:

  • As the car is scrapped, the chassis number will be taken out before the scrap is recycled.
  • As a car owner, you can approach an authorized scrap dealer to carry out the process of scrapping. The dealer needs to make sure that the car is disposed off safely without harming the environment.
  • You must approach the RTO and update them about the scrapping of your car. You can even deregister the vehicle.
  • A physical inspection of the car is performed by the scrap dealer and then an estimated amount of scrapping is decided based on the weight of the car. Once an agreement is made, the scrap dealer will start the work of segregating the car into iron, plastic, rubber, etc.
  • You will be able to negotiate the price you will be getting for various parts of the car which include tyres, battery, and many more. This also depends on the conditions that the parts are in. For cars that have a CNG unit installed, this will also be dealt with differently.
  • One of the precautions that should definitely be taken by you is to check if the car has actually been scrapped by the dealer or not. In some cases, the scrap dealers do not really scrap the vehicle and then the car is used for illegal purposes. This can bring unnecessary trouble for you as the registration number of the car will be in your name.
  • You do not need to submit the original Registration Certificate to a scrap dealer. You can only provide the photocopy of the RC and it will serve the purpose.
  • To carry out the further process at the RTO, you can get some photos of the scrapped vehicle, as it will serve as evidence.

Also Read: Know About the Used Car Ownership and Insurance Transfer

Rules of RTO for scrapping and deregistration of vehicles

The scrap policy in India as per RTO rules is mentioned herein below:

  • Following the vehicle scrappage policy, you would be required to write a letter to the authorized RTO about the scrapping of your car.
  • You would be required to surrender the original RC of your car and also the chassis number that the dealer will cut out from the car while scrapping it. For records, RTO will keep them.
  • The scrap dealer has to give you a confirmation on a letterhead. The letterhead must have his complete address. You can submit the photographs of the scrap at this point.
  • An affidavit along with the application and de-registration for scrap must be submitted by the car owner. The affidavit will be proof that the car is not under any kind of loan, pending court cases, theft, or insurance claims.

The traffic police and the National Crime Records Bureau (NCRB) will send a diligence report to the RTO and then the documents will be verified. Verification is also carried out for maintaining records at the RTO office about the sale or purchase of the vehicle. If all the records are satisfactory, the RTO will deregister the car.

While going for car scrapping, you should update your insurer about it. The insurance policy for the vehicle will be canceled by the insurance provider.

Apr 18, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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