The Ministry of Road Transport and Highway brought a draft for the proposed Vehicle scrappage policy 2021 which the central Government is proposing to make in exercise (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.
And notice is hereby given that the said draft rules shall be taken into consideration after the expiry of thirty days from the date on which the copies of the notification as published in the Official Gazette, are made available to the public.
Vehicle Scrappage Policy 2021 Draft Rules
Short Title and commencement: These rules may be called the Motor Vehicles (Registration and Functions
of Vehicle Scrapping Facility) Rules, 2021. and They shall come into force on the date of their final publication in the Official Gazette
Application These provisions shall lay down the procedure for the establishment of a Registered Vehicle Scrapping Facility (RVSF). These will apply to all vehicles and their last registered owners, Automobile collection centres, Automotive. Dismantling, Scrapping and Recycling Facilities and recyclers of all types of automotive waste products.
Vehicle Scrappage Policy 2021 Powers of RVSF
Under the Vehicle Scrappage Policy 2021, The RVSF (Registered Vehicle Scrapping Facility) shall be provided connectivity and access to the VAHAN database of vehicle registration.
With a password-protected user ID and shall be authorized to make suitable entries regarding scrapping of the vehicle and issuance of Certificate of Deposit and Certificate of Scrapping, either directly or through their collection centre.
(1) The RVSF must have the necessary cybersecurity certifications for the IT Systems for safe access to the
(2) The RVSF shall be provided with the necessary connectivity to verify the records of the vehicles produced for
scrapping with the database of the stolen vehicles, held by NCRB as well with the local Police. It would be obligatory on the part of the RVSF to carry out such verification before scrapping a vehicle.
(3) The RVSF shall undertake verification of the persons handing over the vehicle for scrapping to determine the
bonafide of the vehicle owner or his authorized representative and retain a copy of the same for the record for a
the minimum period of 6 months.
Vehicle Scrappage Policy 2021 Scrapping Criteria
In the Vehicle Scrappage Policy 2021 The following vehicles may be offered for scrapping to Registered Scrapper:
- Vehicles that have not renewed their Certificate of Registration in accordance with Rule 52 of the CMVR,
- Vehicles that have not been granted a certificate of fitness in accordance with Section 62 of the Motor
Vehicles Act, 1988.
- Vehicles which have been damaged due to fire, riot, natural disaster, accident or any calamity, following
which the registered owner self certifies the same as scrap.
- Vehicles that have been declared obsolete or surplus or beyond economic repair by the Central/State
Organizations of the government and have been offered for scrapping.
- Vehicles bought by any agency including RVSF in an auction for scrapping the vehicles.
- Vehicles that have outlived their utility or application particularly for projects in mining, highways, power,
farms etc. as may be self-certified by the owner.
- Manufacturing rejects and tests vehicles as may be certified by the Vehicle OEM.
- Auctioned, impounded and abandoned vehicles by any Enforcement Agency
Vehicle Scrappage Policy 2021 Scrapping Procedure
(1) In-Vehicle Scrappage Policy 2021. The scrapping of vehicles shall be carried out by a Registered Scrapper by following the procedure outlined as mentioned below in respect of all ELVs ( End of Life), except impounded/ abandoned vehicles.
(2) The registered owner or the authorized representative shall hand over the vehicle together with an
Application as per Form-2 in two originals to the Registered Scrapper or the designated collection centre for
deposit/treatment of the vehicle.
(3) If the vehicle does not have a valid registration, then the Registered Scrapper or its designated centre, shall match the identity of the registered owner as per the VAHAN database with the person handing over the vehicle and receive the vehicle and issue a receipt through a digital platform linked to the VAHAN database.
(4) Vehicles impounded by an Enforcement Agency shall be handed over to the Registered Scrapper as per
procedure duly prescribed by the State or Union Territory Government.
(5) It would be obligatory on the part of the RVSF to verify the records of the vehicles produced for scrapping
with the database of the stolen vehicles, held by NCRB as well with the local Police, before scrapping a
(6) The Registered Scrapper shall require, along the Form-2, the following applicable original documents from
the owner or the authorized representative:
i. Original Certificate of Registration.
ii. Authorization from the registered owner.
iii. In case of inheritance, the death certificate of the registered owner accompanied with any proof of
iv. Certificate or order confirming the sale of the vehicle in a public auction in his favour duly signed by the
person authorized to conduct the auction.
v. An undertaking from the owner/representative, indicating that vehicle has no pending criminal record or
(7) It shall be verified that the hire-purchase, lease or hypothecation agreement in the certificate of registration of
a motor vehicle required under sub-section (2) of section 51 of the Act has been duly discharged.
(8) In the Vehicle Scrappage Policy 2021, The Registered Scrapper shall accept self-certified copies from the owner or through an authorized representative of the following documents: –
i. Copy of the PAN Card of the owner,
ii. Crossed cheque of the bank account of the owner.
iii. Identity Proof of the authorized representative (if applicable) such as Passport, Voter Card, Aadhar Card,
Driving Licence, Photo Identity card issued by the State/Central Government Organizations.
iv. Address Proof of the owner such as Electricity Bill, Water Bill, Land Line Telephone Bill, piped cooking
gas bill etc.
v. Digital photograph of the owner or authorized representative physically handing over the ELV to the
Registered Scrapper, or a photograph of the owner/representative duly pasted in Form-2 and countersigned
by the owner/representative.
(9) The Registered Scrapper will return the second Form-2, duly receipted, to the owner or his authorized
representative and issue the Certificate of Deposit as evidence of transfer of ownership of the vehicle.
(10) The RVSF established in a State can accept and scrap the vehicles registered in any of the State/UTs under
the jurisdiction of any Registering authority. The whole process shall be smoothly linked with VAHAN and on a PAN India basis irrespective of the location of any vehicle registering authority.
Payments in Vehicle Scrappage Policy 2021
(11) The Certificate of Deposit will be necessary and sufficient documentation for the owner to avail incentives and benefits for the purchase of a new vehicle as may be promulgated from time to time.
(12) The Certificate of Deposit will be tradeable and once utilized will be stamped as “Cancelled” by the agency
providing the benefits to the holder of the said certificate. Matching entries in this regard shall also be made
by the RVSF on VAHAN Portal.
(13) The Registered Scrapper shall digitally remit or pay by an account payee cheque, the agreed consideration for the vehicle and obtain a receipt for the same from the owner or his authorized representative for the record.
(14) Safe-custody of a cut piece of the Chassis Number for a period of six months from the date of issue of Certificate of Vehicle Scrapping‟ as per Clause 11 will be the responsibility of the Registered Scrapper.
(15) The Registered Scrapper shall maintain a physical and computerized scanned copy of all documents, digitally
certified by the Registration Officer or Designated Officer of the RVSF for record and examination during the inspection, for a period as required by the Companies Act, 2013, as amended from time to time.
(16) The Registered Scrapper shall ensure that removal / re-cycle or disposal of hazardous parts of the scrapped
the vehicle is done as per extant guidelines.
(17) Vehicles will not be scrapped until the fuel, oil, antifreeze, and other gases, fluids etc. are drained and
collected in certified standard containers.
(18) A yearly report on vehicles scrapped shall be furnished in Form-3 or as prescribed by the Transport
Department of the State or Union Territory Government.
Certificate in Vehicle Scrappage Policy 2021
(1) The Registered Scrapper, after completing the necessary treatment, will issue a Digital, Certificate of Vehicle
Scrapping‟, including a digital photograph of the cut out of the Chassis, in Form-4, to update the National Register, VAHAN Database and inform the competent authority of the State or Union Territory Government for updating of records.
(2) A separate record of the scrapped vehicles would be maintained on the VAHAN database by the Central
(3) The reuse/resale of any of the parts of an ELV ( End of Life ) including engines or any refurbished part, obtained from the scrapped vehicle shall be in accordance with the policy/guidelines/standards issued from time to time as
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