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2022-03-13

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Indian Economy
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The Ministry of Road Transport and Highways has issued a draft notification pertaining to the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility Amendment) Rules, 2022. These are amendments to the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, which lay down the procedure for setting up of Registered Vehicle Scrapping Facility (RVSF). These changes will simplify and digitise the vehicle scrapping process for all stakeholders -- vehicle owners, RVSF operators, dealers, regional transport authorities, etc.

Here are the key highlights:-

1) Provision for vehicle owners to apply digitally for vehicle scrapping. All applications for vehicle scrapping will be submitted digitally. RVSFs will act as facilitation centres to help vehicle owners apply digitally to scrap vehicles.

2) Necessary checks to be done from the "Vahan" database before submission of application by vehicle owner have been specified. 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. Application for vehicles failing any of these checks will not be submitted.

3) The introduction of undertakings by the vehicle owner and RVSF operators at the time of vehicle submission to ensure there is transparency in the responsibility of the vehicle before and after submission for scrapping.

4) The 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 will be valid for two years.

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