RTO Rules for Car Scrapping in India

8 min read•Posted on 30 Aug 2024

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Have an old car? Want to scarp your old car? There are so many things you must be aware off. As we all know that in India, car scrapping activity is not an organized one. All you have to do is to get in touch with some scrapyard folk or some local garage where you can easily get your old car scrapped. In a bid to curb pollution, the Indian government recently declared the scrapping of diesel vehicles that were older than fifteen years across the country. Streamlining an equivalent, the Society of Indian Automobile makers (SIAM) declared that the govt. has to adopt a policy to scrap previous vehicles so as encourage house owners.

In India, the scrapping policy ensures that more and more old cars get off the roads and people buy new cars. There are few parameters which needs to be considered before the policy goes into action, which includes the age of the vehicle, fuel type and the city where it is used, etc.

The government levies a “Green Tax” on vehicles which are older than 15 years in terms of pollution control. Once the incentive policy goes into action, it will be a win-win situation for both owners and manufacturers.

Process of Scrapping a Car

There is a certain process which you need to follow in order to scrap your old car.

Inform RTO
Prepare a bond (agreement on Stamp Paper) stating that this car is going off the road and will be scrapped.
RTO will give you a receipt in writing. Whereas at some of the places in India if you go to RTO office to surrender the RC Book, you will have to allow for RTO inspection of the vehicle before scrapping. Check with your RTO official about the scrapping process followed by them.

In order to get your old car scrapped from local car scrap dealer, there is a set process as per the RTO. You must ensure following things.

Your car must be scrapped in front of your eyes and you click some pics of your car along with the chassis number.
Ask a copy of id card of scrap dealer and mention that the car is being purchased for the purpose of scrapping only.
Keep all the papers with you in case if you need them in future.

What happen to Old Registration number of the vehicle

After following the RTO’s process, the registration number is free to use by anyone else. And this is how people gets an old registration number.
Inform your insurance company about the car scrapping, if in case your car insurance is valid. Else, no need to inform insurance company.
Your ID proof will be required by the scrap dealer in order to get a “challan” from the union of scrap dealers to cut the car.

RTO Rules for Scrapping and Deregistration of Vehicles:

First, the car owner has to write a letter to the authorized RTO informing them about the car scrapping.
The car owner will than surrender the original RC of the car along with the chassis number. The RTO will keep this as a record.
The scrap dealer’s confirmation on a letterhead with complete address is also required. The pictures of the scrap can be submitted at this time.
The vehicle owner should also submit an affidavit with the application for scrap and de-registration. The affidavit will mention that the car is not under any loan, insurance claims, or pending court cases. The affidavit will also confirm that the vehicle is not involved in thefts.

The RTO will verify the documents submitted and proceed with the next steps after it receives diligence reports from the traffic police and National Crime Records Bureau (NCRB). Verification is also done for the records maintained at the RTO office regarding sale or purchase of the car. If all records are found to be satisfactory, the car will be deregistered by the RTO.