Vehicle Scrap Policy: RTO Rules for Scrapping Vehicle in India

Regional Transport Offices in India have come up with certain rules and conditions for the scrapping old vehicles i.e. vehicles which are more than 15 years old. These vehicles cannot be used as per the vehicle scrapping policy. Old vehicles running in the country are the major contributor to environmental pollution hence, recently, the government has banned the use of vehicles older than 15 years. The Regional Transport Offices (RTOs) of the country have also stopped re-registering these vehicles. Learn more about the vehicle scrapping policy and the RTO Rules for Scrapping Vehicle in India.

What is Vehicle Scrapping Policy?

The Ministry of Road Transport and Highways (MoRTH) has approved the vehicle scrappage policy Under the scrapping policy motor vehicles that are more than 15 years old will be scrapped. The policy was approved in January this year. As per this policy, a ‘Green Tax’ or pollution tax will be levied on using old vehicles. This tax has been imposed to decrease the usage of old vehicles in the country.

As per the Vehicle Scrapping Policy, transport vehicles that are more than 8 years old will have to pay Green Tax while renewing the fitness certificate. The tax slab for the same would range between 10% to 25% of road tax. Apart from this, public transport vehicles will also be charged the green tax including public buses, however, they will be charged lower taxes and private vehicles will be levied with green tax while renewing the RC after 15 years. The green tax rate is variable and would depend primarily on the category of vehicle and the fuel type. Electric vehicles, as well as vehicles using CNG or ethanol, are exempted from the Green Tax. According to vehicle scrapping policy, whatever revenue generated from the tax would be used for keeping a check on pollution and for monitoring emissions from vehicles.

What is Car Scrapping & Why Should You Opt for it?

Car Scrapping is a situation when the car is declared scrap as it is very old and not considered fit to use because it emits gases and causes pollution. The car scrapping is a right step as it has various advantages for both the environment and the country. Besides this, car scraping also enables better economic growth as well as job opportunities. Old vehicles in comparison to new ones emit more gases as the old engines are not efficient enough in filtering out emissions. Thus, you should opt for car scrapping as it is better for the environment. The car scrapping also looks promising because of other factors such as:

• The equipment from the scrapped vehicles can be reused
• The need for using fresh materials will be reduced
• The automobile sales will be increased
• There will be a rise in new job opportunities
• There will be growth in the automobile industry

RTO Rules & Conditions for Considering Your Vehicle for Scrapping

As per the vehicle scrapping policy, vehicles that are more than 15 years old should not be used, hence they have to be de-registered. Besides the reduction in pollution levels, the key aim behind the old vehicle scrapping is the adoption of EVs or electric vehicles in the country. RTOs in India have set up some rules and conditions to consider the scrapping of old vehicles in India which are as follows:

1. The vehicle owner has to inform the respective RTO in written about the scrapping
2. The original Registration Certificate of the vehicle has to be submitted along with the chassis number to the RTO at the time of scrapping
3. The scrap dealer’s confirmation along with the address is also needed
4. The images of the scrap have to be submitted as well
5. An affidavit and the application has to be submitted to the RTO for de-registration of the vehicle
6. The affidavit illustrates that the car does not have any legal liabilities such as insurance claims, loans, etc
7. The RTO will validate the documents submitted by the vehicle owner
8. The RTO will cross check the application with the traffic police and National Crime Records Bureau (NCRB)
9. After everything is verified, the vehicle will be deregistered by the RTO

Scrapping Process for Your Car

At the time of the scrapping process for a car, the chassis number has to be taken out after which the scrap is sent for recycling. This is one of the most important steps to be followed in the scrapping process by the authorised scrap dealers. Hence, you must ensure that the scrap dealer is an authorised entity. Another step in the scrapping process is reporting the same to the concerned authorities at the RTO so that the vehicle can be de-registered after scrapping.

Before sending the vehicle for scrapping, the dealer will inspect the vehicle to give details about the price of the vehicle scrapping and then probably he will remove the parts of the car. The price of the scrapping is decided on the basis of the vehicle’s condition and it is the responsibility of the car owner to negotiate the price. Vehicle owners must, however, keep a check that the scrapping process is done in the right way to ensure that no discrepancies take place. Once the process is done, the images of the scrapped vehicle should be taken as they are required at the time of de-registration of the vehicle.

Valuation of Your Old Car

The valuation of your old car is primarily dependent on the condition of the car. For instance, if the vehicle after 15 years is still in running condition, then it can be sold further for spare parts. However, if a vehicle is not functional, then the value of the old car is calculated on the basis of the weight of the vehicle. Only the metallic body of the vehicle is scrapped and the scrap dealers make a good profit on it. Hence, the vehicle owner can negotiate the price at the time of the scrapping process.