Registered facility needs to verify vehicle records digitally for scrapping, says draft policy

The Registered Vehicle Scrapping Facility (RVSF) shall digitally verify the records of vehicles produced for scrapping, including no-pending dues and no record of blacklisting by regional transport authorities, according to the draft notification by the Ministry of Road Transport and Highways (MoRTH) for vehicle scrapping.

The statement said MoRTH has issued the draft notification pertaining to the registration and functions of the vehicle scrapping facility, under which necessary checks to be done from the ministry’s ‘Vahan’ database before submission of application by a vehicle owner.

“These checks include the 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,” it said

“Application for vehicles failing any of these checks shall not be submitted,” it added.

The statement said under the proposed rules, all applications for vehicle scrapping shall be submitted digitally and RVSFs will act as facilitation centers.

According to the statement, the introduction of undertakings by the vehicle owner and RVSF operators at the time of vehicle submission will be mandatory to ensure that there is transparency in the responsibility of the vehicle before and after submission for scrapping.

The draft notification has also proposed the introduction of a transfer certificate of deposit to ensure that consumers obtaining the certificate of deposit through electronic trading have digital proof of the transaction.

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.

Prime Minister Narendra Modi had launched the National Vehicle Scrappage Policy in August last year and had said it will help phase out unfit and polluting vehicles and also promote a circular economy.

Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25 percent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.

The vehicle scrappage policy will come into effect from April 1, 2022.