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Muskaan Verma
| Updated: 25 Jul, 2022 | Category: Scrap Business

Procedural Overview of Car Scrap Dealer License in Gurgaon

Car Scrap Dealer License in Gurgaon
Reading Time: 4 minutes

The Vehicle Scrappage policy 2021 was introduced by the Prime Minister in India in order to increase the market for scrap dealers and ensure safer roads. This policy basically lists the vehicles which are dangerous to operate on roads and are responsible for causing pollution. The Vehicle Scrappage policy 2021 also provides for vehicles that are older than 15 years to undergo a fitness test and in case they fail the vehicle fitness test they are scrapped immediately.

The main objective behind the implementation of this policy is to recycle old vehicles and eradicate the pollution caused by them. Further, this Policy also provides for a method to acquire a Car Scrap Dealer Licence in Gurgaon to regulate and monitor the working of Scrap Dealers.

Advantages of Vehicle scrappage Policy 2021

The vehicle Scrappage Policy 2021 has proven to be very beneficial to control pollution and increase road safety. On top of this, the policy has also proven beneficial for: –

  • Boosting the Indian automotive industry by 30% from 4.5 lakh crore turnover to 10 lakh crore
  • Improving the Exporting market from Rs. 1.45 lakh crore to Rs. 3 lakh crore.
  • Reduction in the import bill of Rs. 10 lakh
  • Increasing job opportunities as well as attracting new business investments of around Rs. 10,000 crores.

Acts/Rules that are applicable

The Acts/Rules that are applicable which acquiring Car Scrap Dealer License in Gurgaon include: –

  1. The Batteries (Management and Handling) Rules, 2011 as amended in 2016
  2. The Motor Vehicle Act
  3. The Central Motor Vehicle Rules[1]
  4. The Hazardous Waste (Management, Handling, and Transboundary Movement) Rules, 2008
  5.  The Plastic Waste (Management) Rules
  6. The E-Waste (Management) Rules

Categories of vehicles that are scrapped

  1. Commercial Vehicles- Vehicles that are usually used for commercial purposes are commercial vehicles. These vehicles had to undergo a fitness test after finishing 20 years. In case the vehicle did not pass the test it is qualified for scrap as per the new policy 2021.
  2. Government Vehicles- According to the new policy of 2021, any vehicles that are older than 15 years and are owned by central or state governments are qualified to be scrapped.
  3. Vintage Vehicles- Vehicles that are older than most four-wheelers and two-wheelers and have a higher value. These vehicles are driven less and have distinctive terms and conditions for scrappage.
  4. Private Vehicles- Any vehicle that is owned by a private person. Private Vehicles are scrapped after 15 years once they are declared unfit for the teat.

Pre-Requisite Conditions for acquiring Car Scrap Dealer License in Gurgaon

To set up a Car Scrapping business in Gurgaon, one has to fulfil certain pre-requisite conditions as notified by the Ministry of Road Transport and Highways which are: –

  1. The Authorised vehicle Scrapping facility must be operated by the legal entity that is authorised by the state authorities including any person, company, firm, or a business
  2. The corporation or authorised person must have Valid GST Registration, Valid PAN Card, and Certificate of Incorporation
  3. Apart from this the corporation or authorised person must also have or apply for a Consent to Establish Certificate from Haryana State Pollution Control Board.
  4. They must also meet minimum technical requirements according to the guidelines published by Central Pollution Control Board for collection and dismantling centres.
  5. They should also have qualified workers and authorised equipment to carry out activities that are environmentally sustainable and safe.
  6. The corporation or authorised person must also have or apply for a Consent to Operation Certificate from Haryana State Pollution Control Board.
  7. They should adhere to the provisions of various labour laws including the Workers Compensation Act, Minimum wages act, Employees Provident Fund Act, etc.
  8. They should also provide evidence that they have sufficient space required for the operation of the Scrap dealing Business. The minimum standard for land is 4000 sqm or 8000 sqm for the orange category industrial zone of Gurgaon.
  9. They should have security certifications for IT systems for safe access to the VAHAN database
  10. At last they should have a proper environment management plan for the facility.

Vehicles Authorised for Scrapping

The vehicles that can be given to the authorised scrapper: –

  1. The vehicle that has not been renewed in accordance with Rule 52 of their Central Motor Vehicles Rules, 1989 their Original authorisation Certificate.
  2. The vehicle which according to section 62 of the act has not been authorised for the certificate of fitness
  3. Vehicles that are damaged due to fire, riot, accidents, natural disaster, or any natural calamity.
  4. Vehicles that are declared to be extra, obsolete, or which are beyond economic repair by state authorities and are offered for scrapping. 
  5. Vehicles that are bought to the authorised scraper by any third party or agency including the Authorised Vehicle Scrapping Facility.
  6. Vehicles that have surpassed their usage or applicant.
  7. Vehicles that are abandoned, auctioned or impounded by any Enforcement agency. 

Process of acquiring Car Scrap Dealer License in Gurgaon

The process of acquiring the Car Scrap Dealer License in Gurgaon is mandated by The Ministry of Road, Transport, and Highways and the Haryana State Authorities. The Process includes: –

  1. Firstly the applicant has to fill and submit the FORM-1 addressing the licensing authorities of the Haryana State Authorities along with the processing fees and An Earnest Money Deposit.
  2. Licensing Authority must dispose of the application within 30 days from the date of application for grant of Car Scrap Dealer License in Gurgaon.
  3. The application who has received authorisation must be granted authorisation in Form 1A
  4. In case the authorisation is not granted the application is refunded for Earnest Money/Bank guarantee. However, the processing fees are not refunded.
  5. After the license for Car Scrap Dealer is granted to the applicant they are also required to register with the Central Pollution Control Board and the Haryana Pollution Control Board

Validity and Renewal of Authorisation

The authorisation for a Car Scrap Dealer License is valid for a period of 10 years which can be renewed for another 10 years provided that the car scrap dealer is not in violation of any guidelines prescribed by The Ministry of Road, Transport, and Highways and the Haryana State Authorities or any other applicable laws. Form 1A is used for the renewal of authorisation with renewal fees as prescribed by the Haryana State Pollution Control Board. The Authorisation of the license is not transferrable in nature.

Conclusion

In order to acquire Car Scrap Dealer License in Gurgaon, it is very important that scrap dealers fulfil all the Pre-requisite conditions provided by the policy including acquiring the Consent Certificates and meeting minimum technical requirements according to the guidelines published by the Central Pollution Control Board for collection and dismantling centres as well as meeting the minimum standard for land is 4000 sqm or 8000 sqm for the orange category industrial zone of Gurgaon.

Read our Article:Requirements to Start a Vehicle Scrap Business in India – An Overview

Muskaan Verma

Muskaan has completed her BA.LLB and LLM, gaining vast legal knowledge and expertise. She has keen interest in legal research and content writing, having prior experience of publishing numerous research papers in international journals on Environmental Laws and Corporate Laws.

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