Vehicle Scrappage Certificate in India — RVSF Coordination in 7–14 Days
Scrap your old vehicle at an authorised Registered Vehicle Scrapping Facility (RVSF), get your Certificate of Deposit (CoD), and claim a 5% road tax rebate on your new vehicle purchase. Our experts handle RVSF coordination, challan clearance, loan NOC, and RC cancellation confirmation.
+ Facility charges extra (vary by RVSF)
What is the Vehicle Scrappage Policy in India?
India's Vehicle Scrappage Policy 2021, under the Motor Vehicles (Amendment) Act 2019 and CMVR Rule 52, is the government's framework for phasing out old, polluting vehicles from Indian roads and replacing them with newer, cleaner vehicles. The policy mandates end-of-life deregistration for commercial and government vehicles older than 15 years, and creates an incentive structure for personal vehicle owners to voluntarily scrap vehicles older than 20 years.
When a vehicle is scrapped at a Registered Vehicle Scrapping Facility (RVSF) — an authorised facility registered on the parivahan.gov.in portal — the facility issues a Certificate of Deposit (CoD). This CoD is the critical document that entitles you to a 5% road tax rebate on your next new vehicle purchase, plus potential manufacturer exchange offers of ₹10,000–₹30,000.
The scrapping process results in permanent RC cancellation in the Vahan national vehicle database, removal of the vehicle from your name, and payment of scrap metal value by the RVSF to you. ClearlyComply coordinates every step — from finding the nearest RVSF and clearing outstanding challans to tracking CoD issuance and confirming Vahan RC cancellation.
This service is relevant for all vehicle owners whose vehicles have reached end-of-life age limits, failed fitness tests, been damaged beyond repair, or who simply want to exit ownership cleanly while maximising scrap value and government rebates.
Who Needs Vehicle Scrappage Certificate?
If any of the following apply, you should initiate the vehicle scrappage process:
Goods carriers, buses, and other commercial transport vehicles older than 15 years cannot renew fitness certificates and cannot legally operate on Indian roads.
Central and state government vehicles, PSU vehicles, and local body vehicles are mandatorily scrapped after 15 years under the scrappage policy.
Private cars and two-wheelers older than 20 years cannot pass automated fitness tests in most states and cannot renew their RC effectively.
Any vehicle that repeatedly fails the Automated Testing Station (ATS) fitness test can be scrapped voluntarily rather than continuing costly repairs.
Insurance write-offs and flood-damaged vehicles should be formally scrapped at an RVSF to remove them from your name and recover scrap metal value.
Anyone planning to buy a new vehicle can scrap an old one first to get the CoD, which unlocks a 5% road tax rebate plus manufacturer exchange discounts.
A vehicle sitting unused for years still remains on your name in Vahan, accumulating potential road tax liability. Scrapping formally exits ownership.
Fleet operators replacing old commercial vehicles with newer BS-VI models benefit significantly from scrapping the old fleet systematically for CoD-linked tax rebates.
Eligibility Criteria
- →Commercial and government vehicles: 15 years or older from date of initial registration
- →Personal private vehicles: 20 years or older from date of initial registration
- →Any age: vehicles that have failed automated fitness testing and are uneconomical to repair
- →Any age: insurance write-offs, flood-damaged vehicles, or court-ordered scrapping
- →Applicant must be the registered owner of record as per the Vahan database
- →If vehicle is under hypothecation (bank loan), NOC from the financier (Form 35) must be obtained first
- →All outstanding traffic challans and road tax dues must be cleared before RVSF deregistration
Documents Required for Vehicle Scrappage
- Original RC — Registration Certificate must be surrendered to the RVSF for cancellation in Vahan
- Identity Proof — Aadhaar or PAN of the registered owner for RVSF verification and CoD issuance
- Bank NOC (if hypothecated) — No Objection Certificate from the financier confirming loan closure or permission to scrap
- Form 35/36 — For removing hypothecation endorsement from RC before scrapping (required if loan active)
- PUC Certificate — Pollution Under Control certificate, if available (not always mandatory at RVSF)
- Challan Clearance Proof — Evidence that all outstanding traffic challans have been paid on the Parivahan portal
- Insurance Copy — Vehicle insurance policy copy for RVSF records (may be expired — RVSF still accepts)
- Passport Photos — Recent photographs of the registered owner for RVSF records
Step-by-Step Vehicle Scrappage Process
Check Vehicle Age Eligibility
Confirm your vehicle's age against the scrappage thresholds: government and commercial vehicles must be scrapped at 15 years (from date of initial registration); personal private vehicles at 20 years. You can verify your vehicle's registration date on the Vahan portal using the registration number. Vehicles younger than these thresholds can also be scrapped voluntarily if they are failed, damaged, or uneconomical to maintain. ClearlyComply verifies eligibility and advises on the optimal timing for scrapping to maximise benefits.
Clear Loan or Hypothecation — Get Bank NOC via Form 35
If your vehicle was financed and a hypothecation endorsement is present on the RC, you must obtain a No Objection Certificate (NOC) from your bank or financier before proceeding. Contact your lender for loan closure confirmation and request the bank NOC letter. Use Form 35 to formally record hypothecation termination with the RTO, which removes the lender's endorsement from the Vahan system. This step is mandatory — the RVSF cannot accept a vehicle with active hypothecation without bank clearance. ClearlyComply assists with bank coordination and Form 35 filing.
Pay Outstanding Challans and Road Tax
Before the RVSF can initiate deregistration in Vahan, all outstanding traffic challans and road tax dues associated with your vehicle must be cleared. Check pending challans on echallan.parivahan.gov.in using your vehicle registration number. Pay all dues online or at the designated traffic payment centres. For commercial vehicles, outstanding road tax must be paid to the RTO. Unpaid challans or tax dues prevent successful Vahan deregistration — this is one of the most common reasons for scrapping delays, and ClearlyComply pre-checks your vehicle's status before proceeding.
Locate Nearest RVSF on Parivahan Scrap Portal
Find registered RVSF centres at parivahan.gov.in under the Vehicle Scrappage section. As of 2025–26, operational RVSFs are concentrated in major metros and state capitals, with more centres being added under the Ministry of Road Transport and Highways (MoRTH) expansion plan. Select the facility nearest to your location, check their appointment availability, and pre-book your slot. ClearlyComply maintains a verified, up-to-date directory of operational RVSFs and contacts them directly on your behalf for scheduling — including coordination for towing if your vehicle cannot be self-driven to the facility.
Transport Vehicle to RVSF
Deliver the vehicle to the RVSF on the appointed date with all required documents. If the vehicle is non-operational (engine failure, damage, flat tyres), the RVSF may arrange inward towing at an additional cost, or ClearlyComply can coordinate private towing service to bring the vehicle to the facility. Ensure the original RC and identity proof are carried to the RVSF. Remove all personal belongings, navigation devices, and aftermarket accessories before delivery as these will not be returned once the vehicle enters the scrapping process.
RVSF Inspects, Deregisters on Vahan, and Issues CoD
The RVSF team conducts a physical inspection of the vehicle, records the chassis number, engine number, and registration details, and confirms document verification. They then initiate the deregistration request in the Vahan national vehicle database. Once Vahan deregistration is confirmed, the RVSF issues the Certificate of Deposit (CoD) — a digitally signed document that serves as official proof of scrapping. The RVSF also pays you the assessed scrap metal value at this stage. ClearlyComply tracks the deregistration status in Vahan and confirms CoD receipt.
RC Permanently Cancelled in Vahan
Post deregistration, the vehicle's RC is permanently cancelled in the Vahan national registry. The registration number is retired and cannot be allotted to any other vehicle. The vehicle ceases to exist in the government database. This protects you from future liability — no road tax demands, no challan liability, no insurance renewal requirements. ClearlyComply verifies the Vahan status independently after RVSF confirmation to ensure RC cancellation is fully reflected in the system before closing your service file.
Use CoD for 5% Road Tax Rebate on New Vehicle Purchase
Present your Certificate of Deposit to the RTO at the time of registering your new vehicle, or to the dealer who will submit it on your behalf during the new registration process. The 5% road tax rebate is applied directly to the road tax payable on the new vehicle. Additionally, many vehicle manufacturers accept the CoD as a trade-in document and offer exchange discounts of ₹10,000–₹30,000 over and above the government rebate. The CoD is valid for 2 years — ensure your new vehicle purchase is completed within this window.
Ready to Scrap Your Old Vehicle?
Our experts coordinate RVSF appointment, challan clearance, bank NOC, and Certificate of Deposit — in 7–14 days at ₹1,999.
ClearlyComply Service Plans
Basic
- Vehicle eligibility check
- RVSF location guidance
- Document checklist
- Challan check on Parivahan
- Email support
Standard
- Everything in Basic
- RVSF appointment booking
- Bank NOC coordination guidance
- Challan clearance coordination
- Vahan deregistration tracking
- CoD receipt confirmation
- RC cancellation verification
- Phone + WhatsApp support
Premium
- Everything in Standard
- Towing coordination (non-operational vehicle)
- Form 35/36 hypothecation removal
- Inter-state scrapping coordination
- CoD claim guidance for new purchase
- Priority 4-hour response
- Dedicated case manager
Vehicle Scrappage Timeline
| Stage | Activity | Time Required |
|---|---|---|
| Stage 1 | Document check, challan verification, eligibility confirmation | 1 working day |
| Stage 2 | Bank NOC coordination (if vehicle is hypothecated) | 2–5 working days |
| Stage 3 | Challan and road tax clearance | 1–2 working days |
| Stage 4 | RVSF appointment booking and scheduling | 1–3 working days |
| Stage 5 | Vehicle delivery to RVSF and physical inspection | 1 working day |
| Stage 6 | RVSF deregistration in Vahan and CoD issuance | 1–3 working days |
| Total (no loan, challans clear) | 7–10 working days | |
| Total (with bank NOC required) | 10–14 working days |
Benefits of Scrapping Your Old Vehicle
The CoD unlocks a 5% road tax rebate when registering a new vehicle. On a ₹10 lakh car with ₹80,000 road tax, you save ₹4,000 directly.
Major OEMs like Maruti, Hyundai, Tata Motors, and Mahindra offer ₹10,000–₹30,000 additional exchange discounts when you present a valid CoD.
The RVSF pays you scrap metal value — typically ₹10,000–₹30,000 for cars and ₹5,000–₹12,000 for two-wheelers, based on vehicle weight and condition.
RC cancellation removes the vehicle from your name permanently. No future road tax demands, insurance liability, or challan notices from the vehicle.
Old vehicles are disproportionate sources of air pollution. Scrapping them at authorised RVSFs ensures environmentally safe recycling of hazardous fluids and metals.
An old unused vehicle still generates insurance renewal reminders and road tax demands. Scrapping formally eliminates these recurring compliance obligations.
Don't Leave Money on the Table — Scrap and Claim Your Rebate
Expert RVSF coordination, CoD tracking, and RC cancellation confirmation. ₹1,999 service fee — all-inclusive.
Risks of Not Scrapping Your Old Vehicle Properly
Fitness Certificate Denial and Road Operation Ban
Commercial vehicles and government vehicles older than 15 years, and personal vehicles older than 20 years, cannot pass fitness tests at Automated Testing Stations. Operating such vehicles on public roads after fitness certificate expiry is a violation of the Motor Vehicles Act and can attract seizure of the vehicle, compounding penalty, and prosecution of the operator. Simply not using the vehicle does not remove it from your legal ownership or liability.
Continuing Liability Even on Unused Vehicles
An old vehicle sitting in your garage or a vacant plot remains registered in your name in Vahan. If the vehicle is involved in any incident — stolen and used in a crime, involved in a road accident — you as the registered owner bear legal accountability. Outstanding challans also continue to accumulate in some states. Formal scrapping at an RVSF is the only way to permanently exit ownership liability.
Pollution Non-Compliance Penalty
Operating old vehicles without valid PUC certificates attracts fines under the MV Act. In major cities like Delhi, Mumbai, and Bengaluru, high-pollution old vehicles face seasonal road restrictions under Graded Response Action Plans (GRAP). Being caught operating a vehicle under restriction attracts substantial fines and may result in the vehicle being seized. Scrapping removes this risk entirely.
Informal Scrapping Creates Ongoing Liability
Selling your old vehicle to an unauthorised scrap dealer — who does not process RVSF deregistration — leaves the vehicle technically in your name in Vahan. If the informal dealer misuses the chassis/engine number, or if the vehicle parts are used in another vehicle that is involved in an accident or crime, the liability traces back to the original registered owner. Only RVSF-issued CoD with Vahan deregistration provides genuine legal exit.
State-Wise RVSF Availability
| State | RVSF Centres | Online Pre-Booking | Road Tax Rebate | Additional Manufacturer Discount |
|---|---|---|---|---|
| Maharashtra | 8+ | Yes (Parivahan) | 5% | Up to ₹30,000 (OEM-specific) |
| Delhi NCT | 6+ | Yes (Parivahan) | 5% | Up to ₹25,000 (OEM-specific) |
| Karnataka | 5+ | Partial | 5% | Up to ₹20,000 (OEM-specific) |
| Tamil Nadu | 6+ | Partial | 5% | Up to ₹20,000 (OEM-specific) |
| Gujarat | 5+ | Yes (Parivahan) | 5% | Up to ₹25,000 (OEM-specific) |
| Uttar Pradesh | 7+ | Partial | 5% | Up to ₹20,000 (OEM-specific) |
| Rajasthan | 3+ | Limited | 5% | Up to ₹15,000 (OEM-specific) |
| Telangana | 4+ | Partial | 5% | Up to ₹20,000 (OEM-specific) |
| West Bengal | 3+ | Limited | 5% | Up to ₹15,000 (OEM-specific) |
| Punjab | 3+ | Limited | 5% | Up to ₹15,000 (OEM-specific) |
RVSF centre counts and pre-booking availability are subject to expansion as the policy rollout continues. ClearlyComply maintains real-time facility availability data. Manufacturer discounts vary by OEM and may change — confirm with dealer at time of purchase.
Latest Vehicle Scrappage Rules 2025–26
Automated Testing Stations (ATS) Now Mandatory for Fitness
From 2024 onwards, fitness certificate renewal for older commercial vehicles must be done at government-approved Automated Testing Stations (ATS). These computerised facilities check emissions, brakes, lighting, and structural integrity. Older vehicles that cannot pass ATS tests must be scrapped — there is no provision for manual inspection exemptions in ATS-notified areas. ClearlyComply can help you determine if your vehicle's fitness renewal window has closed and initiate the scrapping process promptly.
RVSF Network Expansion — 60+ New Centres Planned by 2026
MoRTH has announced plans to expand the RVSF network from approximately 60 centres to 200+ by the end of 2026, covering all major districts. Private operators are being encouraged to set up RVSFs under the Vehicle Scrapping Policy framework with government support for land and licences. This expansion will significantly reduce the transport distance and cost for vehicle owners in tier-2 and tier-3 cities who currently have limited RVSF access.
CoD Now Accepted Digitally at RTO for New Registration
From 2025, RTOs in Vahan-integrated states accept digitally generated CoDs from RVSFs directly through the Vahan system — no physical document submission required at the RTO for road tax rebate claim. The rebate is auto-calculated when the new vehicle's registration is processed in Vahan with the linked CoD. This eliminates the manual paperwork step and speeds up new vehicle registration for scrappage policy beneficiaries.
Bank Incentives for Scrappage — Zero-Rate Loans
Several nationalised banks and NBFCs have announced preferential interest rates and processing fee waivers for new vehicle loans taken in conjunction with a valid CoD. The CoD acts as proof of responsible vehicle upgrade and is treated favourably in loan assessments. Some banks offer up to 0.25% lower interest rate on new vehicle loans for CoD-presenting applicants. ClearlyComply advises on leveraging the CoD for both road tax rebate and financing benefits simultaneously.
Expert Tips for Faster Vehicle Scrapping
Pre-Clear All Challans Before Approaching RVSF
The most common cause of RVSF processing delays is pending challans in the Vahan/eChallan system that block deregistration. Before booking your RVSF appointment, check all pending challans on echallan.parivahan.gov.in using your vehicle registration number and clear every pending fine. This single step, done in advance, prevents the most frequent reason for scrapping process delays and ensures smooth deregistration at the RVSF on your appointment date.
Start Bank NOC Process at Least 2 Weeks Early
If your vehicle was financed and has a hypothecation endorsement on the RC, start the bank NOC process at least 2 weeks before your intended RVSF appointment. Banks often take 5–10 business days to process NOC requests even after loan closure. Approaching the RVSF without a cleared hypothecation causes appointment cancellation. ClearlyComply initiates bank coordination as the first step and tracks NOC progress before booking the RVSF slot.
Scrap Before Buying the New Vehicle — Not After
Many vehicle owners mistakenly buy the new vehicle first and then try to scrap the old one, only to find the CoD arrives after the new vehicle's road tax has already been paid — losing the rebate. The correct sequence is: scrap first, receive CoD, then purchase the new vehicle and claim the road tax rebate during new registration. ClearlyComply plans the scrappage timeline to ensure CoD is in hand before your new vehicle purchase is finalised.
Remove Valuable Accessories and Parts Before RVSF Delivery
Once a vehicle enters the RVSF, it belongs to the facility — all components are dismantled for recycling. Remove valuable aftermarket accessories (upgraded speakers, dash cameras, GPS devices, alloy wheel covers, custom seat covers) before delivering the vehicle. CNG kits, LPG kits, and other add-ons installed at extra cost should also be documented and removed if feasible. The RVSF only compensates for the base scrap metal value — not installed accessories.
ClearlyComply vs DIY Vehicle Scrapping
| Parameter | DIY (Self) | ClearlyComply |
|---|---|---|
| RVSF location and booking | Manual search on Parivahan portal; limited info on facility quality | Verified RVSF network; direct booking with quality facilities |
| Challan clearance coordination | Self-managed; can miss state-specific dues | Comprehensive challan pre-check before RVSF booking |
| Bank NOC and loan closure guidance | Must negotiate with bank independently | Step-by-step bank coordination; Form 35 filing assistance |
| Towing arrangement for non-operational vehicle | Must source towing independently at market rates | Coordinated through ClearlyComply's logistics network |
| Vahan deregistration tracking | Manual check on Parivahan portal | Active monitoring with WhatsApp notifications |
| CoD receipt confirmation | RVSF informs directly; follow-up required if delayed | ClearlyComply confirms CoD issuance and sends copy |
| RC cancellation verification | Self-check on Vahan portal | Independent Vahan check by ClearlyComply team |
| Inter-state scrapping coordination | Complex — must coordinate between two states independently | Full inter-state coordination included in Premium plan |
| CoD usage for new vehicle rebate | Must coordinate with RTO and dealer independently | Guidance on CoD submission process at RTO/dealer |
| Risk of informal dealer scrapping | High — may scrap at non-RVSF and lose CoD and rebate | Zero — ClearlyComply only works with registered RVSFs |
| Total time to completion | 20–45 days (including coordination delays) | 7–14 working days |
| Total effective cost | Govt fees only (but significant time and coordination loss) | ₹1,999 + facility charges (major time saving) |
Frequently Asked Questions — Vehicle Scrappage in India
What is a Certificate of Deposit (CoD) in vehicle scrapping?
What benefits do I get for scrapping my old vehicle?
Which vehicles qualify for the Vehicle Scrappage Policy?
Is vehicle scrapping compulsory in India?
Can I scrap a vehicle that has a pending bank loan?
What happens to the RC number after scrapping?
Can I get money for the scrap metal when scrapping my vehicle?
How do I find a Registered Vehicle Scrapping Facility near me?
What if there is no RVSF near my location?
How long is the Certificate of Deposit valid?
Can I scrap a vehicle registered in a different state?
What is the difference between RVSF and informal scrap dealers?
Related RTO Services
Vehicle Scrappage — Available Across 49 Cities in India
Scrap Your Old Vehicle — Get CoD and Claim Road Tax Rebate
Expert RVSF coordination, challan clearance, bank NOC guidance, and RC cancellation confirmation. ₹1,999 all-inclusive service fee.
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