Draft Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility Amendment) Rules, 2022

On March 04, 2022, the Ministry of Road Transports and Highways (MoRTH) has issued the draft Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility Amendment) Rules, 2022 to further amend the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.

Key Highlights:

  1. Provision for vehicle owners to apply digitally for vehicle scrapping. All applications for vehicle scrapping shall be submitted digitally. RVSFs will act as facilitation centres to help vehicle owners apply digitally to scrap their vehicles.
  2. Necessary checks to be done from “Vahan ” database before submission of application by vehicle owner have been specified. These checks include surrender of hire-purchase, lease or hypothecation agreement of the vehicle, no criminal record against the vehicle in records of the National Crime Records Bureau, no pending dues on the vehicle, and no record of blacklisting of the vehicle by regional transport authorities. Application for vehicles failing any of these checks shall not be submitted.
  3. Introduction of undertakings by vehicle owner and RVSF operators at the time of vehicle submission to ensure that there is transparency in the responsibility of the vehicle before and after submission for scrapping
  4. Inclusion of more details in the Certificate of Deposit pertaining to the vehicle submitted for scrapping to enable transparency in trading of the said certificate. The said certificate will be available to the vehicle owners digitally and shall be valid for a period of 2 years
  5. Introduction of Transfer Certificate of Deposit to ensure that consumers obtaining the certificate of deposit through electronic trading have a digital proof of the transaction

Proposed Amendments:

  • In Rule 4, which specifies Powers and duties of Registered Vehicle Scrapping Facility sub-rule (2) has been substituted with:

“The Registered Vehicle Scrapping Facility must have necessary cyber security certifications for the IT Systems before start of operation for safe access to the VAHAN database.”

  • Rule 10, which specifies Scrapping Procedure has been substituted with:

“Scrapping Procedure: – (1) The scrapping of vehicles shall be carried out by an RVSF in respect of all End-of-Life Vehicles, by the following procedure, namely: –

i. The registered owner shall apply digitally on Vahan as per Form-2 to the RVSF or the designated Collection Centre for deposit and further treatment of the vehicle. The RVSF and the designated Collection Centre shall also act as facilitation centres to support citizens with digital application of Form-2.

ii. Vehicles impounded by an enforcement agency shall be handed over to the RVSF, if they meet the criteria for vehicle scrapping as per rule (8).

iii. The RVSF shall verify the records of the vehicles produced for scrapping with the database of the stolen vehicles held by National Crime Records Bureau through the Vahan portal.

iv. The Registered Vehicle Scrapping Facility shall also digitally verify through the Vahan portal –

a. that the hire-purchase, lease or hypothecation agreement in the certificate of registration of a motor vehicle required under sub-section (1) of section 51 of the Act has been duly discharged for the concerned vehicle,

b. that there are no pending dues on the vehicle, and

c. that the vehicle has not been blacklisted

If the vehicle fails any of these checks, the owner shall not be allowed to submit the digital application as per Form-2.

v. The following documents shall be uploaded along with Form-2 by the registered owner for verification by the RVSF –

a. copy of the Permanent Account Number card of the owner;

b. cancelled cheque of the bank account of the owner;

c. letter of authorization on stamp paper for the authorized representative as per para 5 of Form-2, applicable if the vehicle is not to be submitted by the owner;

d. identity proof of the authorized representative (if applicable) such as passport, voter card, Aadhar card, driving license or photo identity card issued by the State Government or the Central Government;

e. address proof of the owner such as electricity bill, water bill, land line telephone bill or piped cooking gas bill etc; and

f. digital photograph of the owner or authorized representative with the End-of-Life Vehicle;

g. an undertaking, as per para 4 of Form-2 from the owner acknowledging that all information furnished in digital Form-2 application is true as per his knowledge.

vi. Once the digital application as per Form-2 is submitted on Vahan, it shall be sent digitally to the regional transport office for no dues for vehicle scrapping as per rule 58A of CMVR.

vii. On receiving the no dues for vehicle scrapping from the regional transport office, the RVSF shall accept the digital application as per Form-2 and inform the owner to submit the vehicle for scrapping. If the no dues for vehicle scrapping is not provided by the regional transport office, the RVSF cannot accept the application for scrapping.

viii. The owner or his authorized representative shall submit the vehicle along with the original certificate of registration to the RVSF and sign a digital undertaking as per Form-2A. The RVSF shall also sign a digital undertaking as per Form-2B. In case of no action by the vehicle owner after acceptance of digital application as per Form-2 by the RVSF, the application shall expire along with the no dues for vehicle scrapping as per Rule 58A of CMVR.

ix. The RVSF 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 record.

x. The RVSF shall deface or punch the certificate of registration in the presence of the owner or his authorized representative and issue a digitally signed Certificate of Deposit in Vahan, as per Form 2C, as evidence of acceptance of vehicle for scrapping.

xi. The RVSF established in a State may accept and scrap the vehicles registered in any of the State or Union Territory under the jurisdiction of any Registration Authority.

xii. The whole process shall be seamlessly linked with VAHAN on pan India basis irrespective of the location of any vehicle registering authority.

xiii. The Certificate of Deposit shall be a necessary and sufficient document for the owner to avail incentives and benefits for purchase of a new vehicle as may be declared from time to time. The validity of this certificate shall be 2 years from the date of issuance.

xiv. The Certificate of Deposit shall be electronically tradeable. The transfer Certificate of Deposit shall be generated on the trading platform for each new owner as per Form 2D. The Certificate of Deposit once utilised shall be marked “Cancelled” in the Vahan database by the regional transport office or dealer providing the benefits to the bearer of the said certificate.

xv. The regional transport office/dealer registering the new vehicle purchased against the Certificate of Deposit shall verify and authenticate the Certificate of Deposit digitally.

xvi. The RVSF shall facilitate the process of transmission of original certificate of registration (defaced or punched) along with Certificate of Vehicle Scrapping to road transport or regional transport office, in the state of registration of the vehicle, to get the vehicle registration cancelled as per rule 52B of CMVR.

xvii. The RVSF shall have the cut piece of the chassis number in safe custody for a period of six months from the date of issue of Certificate of Vehicle Scrapping issued under rule 11.

xviii. The RVSF shall maintain digital scanned copy of all documents for a period of ten years for record and examination during inspection.

xix. The RVSF shall ensure that removal or re-cycling or disposal of hazardous parts of the scrapped vehicle is done as per CPCB guidelines for Environmentally Sound Management of End-of-Live Vehicles and AIS-129.

xx. Vehicles shall not be scrapped until the fuel, oil, antifreeze, and other gases, fluids etc. are drained and collected in certified standard containers.

xxi. A digital register of vehicles scrapped shall be maintained in Form-3.”

  • FORM 2A, which specifies UNDERTAKING BY APPLICANT AT THE TIME OF VEHICLE SUBMISSION has been inserted.
  • FORM 2B, which specifies UNDERTAKING BY RVSF AT THE TIME OF VEHICLE SUBMISSION has been inserted.
  • FORM 2C, which specifies CERTIFICATE OF DEPOSIT has been inserted.
  • FORM 2D, which specifies TRANSFER CERTIFICATE OF DEPOSIT has been inserted.

Objections or suggestions, if any, may be sent to the Joint Secretary (Transport), Ministry of Road Transport and Highways, Transport Bhawan, Parliament Street, New Delhi – 110 001 or by email at <comments-morth@gov.in> within the period specified above;

Objections or suggestions which may be received from any person with respect to the said draft rules before the expiry of the period aforesaid will be considered by the Central Government.

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