The Government has released new rules regarding the usage of vehicles or cars in India for 15 years. As per the guidelines, once the petrol or CNG car crosses the 15-years of mark, then it will be considered unfit to be driven on Indian roads, and a fitness certificate can reverse the ban & make it legal for you to drive them. For diesel vehicles, the cut-off period is 10 years. Currently, the Vehicle Scrappage Policy introduced by the Government that all private vehicles older than 15 years must go through a fitness test in order to the renewal of registration for a maximum of 5 years. In case any car owner doesn’t want to renew their vehicle registration, then they can send their car or vehicle to the scrap yard. In this blog, we will discuss how to obtain Vehicle Scrapping Certificate.
What are the benefits of obtaining a Vehicle Scrapping Certificate in India?
Following are some benefits of obtaining a Vehicle Scrapping Certificate:
- Upon getting a Vehicle Scrapping Certificate, the former car vehicle owner can get between 4% to 6% rebate on the total price of the vehicle;
- They can also get a rebate in the road tax of their new purchase;
- There are also several indirect benefits, apart from the fact that they would help lessen air pollution.
- The scrap metal accumulated via the process, when recycled, can be used to make new car components;
- Extensive recycling and scrapping are also expected to boost new car sales.
Remember that a car or a vehicle that is older than 15 years can be costly, not only because you need to renew the vehicle registration every five years but also because you are required to pay an extra Green Tax as part of your road tax. Hence it is more prudent for you, the owner, to get paid for the vehicle or car being scrapped for a total mutually agreed upon by you and the authorised scrap dealer. If the car is not in a running condition, the amount will be based on the value & the weight of the scrap metal. If the componentry is in running condition, the dealer can sell individual components & pay you a higher amount for it, as only the metal parts must be scrapped. The other rubber and plastic parts must be segregated after the owner has given their approval.
Criteria for obtaining Vehicle Scrapping Certificate
Following are the criteria for obtaining Vehicle Scrapping Certificate:
- Vehicles that haven’t renewed their original Registration Certificate with Rule 52 of the Central Motor Vehicle Rule;
- Vehicles that have not been issued a fitness certificate;
- Vehicles bought by any agency, including Authorised Vehicle Scrapping Facility in action for the scrapping of vehicles;
- Manufacturing rejects & test vehicles may be certified by Vehicle OEM;
- Vehicles that have been damaged due to riot, fire, accident, natural disaster, or any calamity, where the registered owner self-authorizes same as scrap;
- Vehicles that have outlasted their utility or for projects in highway, farms, mining, power, etc., may be self-certified by the owner;
- Vehicle declared as surplus or outdated or beyond economical repair by State or Central Government is offered for scrapping;
- Seized, abandoned, and auctioned vehicles by any Enforcement Agency.
The eligibility conditions for the grant of authorization for the treatment of end of life vehicles in an AVSF by the respective State or UT Government are:
- The Authorised Vehicle Scrapping Facility must be owned & operated by any legal entity, be it a person, firm, society, or trust established with applicable laws.
The entity must possess:
- Incorporation Certificate;
- Valid GST Registration ;
- Valid PAN.
- Should meet the minimum technical requirements for the collection & dismantling centres as per Pollution Control Board, should have manpower & equipment to carry out dismantling activities;
- Should provide approved Plant Layout & building plan and also have an environmental management plan for the facility;
- Should have Establishment License from the authority;
- Should undertake to obtain required quality certifications within 12 months of commencement of operations.
Locating a Government-Certified Scrapping Facility
As per MoRTH, a scrapping facility needs to follow several government-specified mandates to qualify as an AVSF or Authorised Vehicle Scrapping Facility. For instance, an authorised scrapper needs to get a quality certification of ISO 9001 within 12 months of commencement of operations. The Authorised Vehicle Scrapping Facility must be in possession of security certifications for IT systems in order to have access to the VAHAN database.
Upon recognising a government-certified AVSF, the car owner must arrange the following documents:
- Original copy of Registration Certificate of the vehicle;
- Authorisation from the registered owner;
- A copy of the owner’s Aadhar Card, PAN Card, or any other valid id proof;
- Address proof such as the latest water bill, electricity bill, etc.;
- A government-authorized Form-2 in which the owner of the car or the owner’s authorized representative must fill, giving a copy to the certified scrap dealer, who in turn will provide a “Certificate of Deposit ” as proof of transfer of ownership.
Procedure to obtain the Vehicle Scrapping Certificate
The owner of the car has to ensure that the chassis number of the car is removed before the vehicle is successfully demolished. The chassis number along with photographic proof of the scrapped vehicle must be produced at the RTO in order to de-register your car or vehicle and receive a Vehicle Scrapping Certificate. As per the guidelines set by MoRTH, the certified scrap dealer must keep a physical and digital copy of all the documents related to your car or vehicle. The owner of the car is advised to inspect the scrapping process to make sure that the parts deposited cannot be re-used for unauthorised activities.
As per the rules of MoRTH, the authorised scrap dealer is lawfully required to install CCTV cameras & keep a video record of the vehicle scrapping in their IT database. Following this, the certified vehicle scrapper will issue a digital Vehicle Scrapping Certificate which will be uploaded to the VAHAN database and National Register. This will help in updating the state or UT records in getting the vehicle deregistered.
Read our Article:AVSF (Authorized Vehicle Scrapping Facility): How to set it up?