Parting with your car is bound to be an emotional moment. Especially if the car has served you for years and there are a lot of fond memories attached to it. As it is said, all good things come to an end. When it is time to bid adieu to your car by selling it as scrap, make sure to adhere to the rules and guidelines put forth by Regional Transport Office (RTO) to stay on the right side of the law.

Reasons For Scrapping

People might want to sell their car in scrap because:

● It has become too old and its parts are failing one by one

● The manufacturing company has stopped making the car’s spare parts

● The cost of repairing the car over a period of time has gone overboard

● The four-wheeler is lying unused for years

● The car has become non-compliant with the environment protection laws

● They do not want to pay Green Tax (applicable on 15-year-old cars, conditions apply)


Importance of Rules, Regulations & Guidelines

Just as there are strict rules regarding driving license, insurance, and four-wheeler and two-wheeler traffic rules, there are certain guidelines that need to be followed while selling your car in scrap as well. Major part of these rules is designed to ensure that the car being scrapped hasn’t been used for an illegal activity, there are no dues left to be paid and there is proper documentation in place.

Entities Involved In The Scraping Process

There are various parties that can be involved when it comes to a car, namely the bank who has given a loan to purchase the car, the insurance company insuring it, the RTO office where the car is registered, a second-hand buyer if there has been a sale from the original owner’s side, etc. In order to keep a track of the entire life cycle of the car, it is important to follow rules, regulations and guidelines while selling your car in scrap.

RTO, National Crimes Records Bureau and Traffic Police are key entities involved in the car scrapping process. These three entities need to provide clearance, only then can a car be scrapped. RTO will check records for any sell/purchase, traffic police will check for pending traffic police challans and traffic violation fines, and the National Crimes Records Bureau conducts their due diligence. The car can be scrapped once all these entities give a go ahead.

Scrapping Process

Just as there are four-wheeler and two-wheeler traffic rules and processes that need to be followed while dealing with traffic police challan or traffic violation fines, there is a process in place for scrapping your car as well. The process is as follows:

● Writing a letter to the nearest RTO regarding scrapping of the car.

● The original Registration Certificate of the car intended to be scrapped needs to be submitted to the RTO. The RTO also needs the metal sheet displaying the chassis number.

● Applicant needs to submit an affidavit. It specifies that the car in question has no legal issues with respect to bank, insurance, etc.

● Once the application is received, the RTO will conduct a basic due diligence.

● RTO gets in touch with various entities mentioned above to ensure that the car is not involved in any illegal activity.

● The vehicle gets deregistered when the RTO approves the application and is satisfied with the due diligence

Follow The Rules

Scrapping your vehicle without following a process can get you in trouble. There might be some people who might do it for you without any documentation but such methods should not be encouraged. Do it the right way, the legal way.