Scrappage facilities to digitally verify vehicle records: Draft policy

The Ministry of Road Transport and Highways (MoRTH), in a draft notification for vehicle scrappage, has stated that the Registered Vehicle Scrapping Facilities (RVSFs) shall be required to digitally verify the records of vehicles being produced for scrapping. These facilities will have to verify the vehicle's no-pending dues and no record of blacklisting by regional transport authorities.

The draft notification stated all the necessary checks to be done from the ministry's 'Vahan' database before submission of application by a vehicle owner. "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," it said.

A statement from the ministry clarified that application for vehicles failing any of these checks shall not be submitted, stating that under the proposed rules, all applications for vehicle scrapping shall be submitted digitally and RVSFs will act as facilitation centres.

Further, introduction of undertakings by 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.

Additionally, the ministry also proposed the 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. This certificate will act as a sufficient document for owners to avail incentives and benefits for purchase of a new vehicle. The validity of this certificate shall be 2 years from the date of issuance.

The Centre had introduced the National Vehicle Scrappage Policy in August last year in order to help phase out unfit and polluting vehicles from the roads of the country and also to promote a circular economy.

(with inputs from PTI)

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