Vehicle Scrapping Certificate in Delhi

Delhi’s vehicle population includes hundreds of thousands of petrol vehicles that have crossed 15 years of age and diesel vehicles that have crossed the 10-year mark – and every single one of these vehicles now falls under the End of Life Vehicle category under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, notified by the Ministry of Road Transport and Highways vide GSR Notification 653(E) dated 23 September 2021. If you own one of these vehicles and are still driving it in Delhi, or simply want to scrap it voluntarily to claim the government incentives, the legal route is through a Registered Vehicle Scrapping Facility (RVSF) – and the documents you walk away with are the Certificate of Deposit (CoD) and the Certificate of Vehicle Scrapping (CVS).

The Government of NCT of Delhi further notified the Guidelines for Handling End of Life Vehicles in Public Places of Delhi, 2024 – drafted in response to the Delhi High Court’s direction in W.P.(C) 10749/2023 dated 22 August 2023 – which set up a formal, standardised process for releasing impounded vehicles, routing End of Life Vehicles to RVSFs, and ensuring the scrap value is paid to the vehicle owner within 15 days of the vehicle being accepted by the scrapping facility. These guidelines work alongside the 2021 Central Rules, not in place of them, creating a layered compliance structure that Delhi vehicle owners need to navigate correctly.

The process works through the V-SCRAP portal (vscrap.parivahan.gov.in), which is integrated directly with the VAHAN national vehicle database. Once your vehicle is accepted and processed by an RVSF, the facility uploads the scrapping data to VAHAN, the Certificate of Deposit is generated, and the RTO uses this to formally deregister the vehicle from its records. Until this entire chain is completed – RVSF acceptance, CoD generation, and RTO deregistration entry in VAHAN – your vehicle’s registration remains technically active in the national database, which means you remain the legal owner on record and continue to carry liability for it.

At Kagzikaam, we see three situations regularly among Delhi vehicle owners: owners whose vehicles have been impounded by Delhi Traffic Police or the Transport Department and who need to route the vehicle to an RVSF quickly to claim the scrap value before the 15-day window closes; owners who want to voluntarily scrap their overaged vehicle to unlock the road tax rebate when buying a new one; and owners who have already surrendered their vehicle to a scrapping centre but never followed through with the RTO deregistration and are now getting tax or challan notices in their name for a car that no longer exists. Each situation needs a different document path, and this page covers all three.

The Two Certificates You Need – and Why Both Matter

Certificate of Deposit (CoD): This is the first document the RVSF issues after it verifies your ownership documents and accepts your vehicle. The CoD is what you take to the RTO to initiate formal deregistration, and it is the document you need to present when buying a new vehicle to claim your road tax rebate and the registration fee waiver. Without the CoD, neither the RTO deregistration nor the new vehicle incentives can be processed.

Certificate of Vehicle Scrapping (CVS): The CVS is issued after the actual dismantling is complete and the scrapping data is uploaded to VAHAN by the RVSF. The CVS is the legally conclusive proof that the vehicle no longer physically exists and has been processed in an environmentally compliant manner. The CVS is what closes the loop entirely – it is the document that confirms your liability as the registered owner has ended, and it is what the RTO references when it marks the vehicle’s status as “Scrapped” in the VAHAN database.

Both documents are digitally generated by the RVSF and are accessible through the V-SCRAP and VAHAN portals. Neither is issued by the RTO directly – the RTO acts on the basis of these documents, not as the issuer.

Delhi’s Specific Enforcement Context

Delhi’s situation is more acute than most other Indian cities because of the Supreme Court’s 2014 order on overaged diesel vehicles and the Commission for Air Quality Management (CAQM) directions under GRAP protocols, which specifically restrict overaged and lower-emission-standard vehicles from operating in the NCR region during periods of poor air quality. A petrol vehicle over 15 years or a diesel vehicle over 10 years found plying on Delhi roads is liable to impoundment under the 2024 Delhi Guidelines. If a vehicle is impounded for the second time, or if it is a diesel transport vehicle over 10 years old, it will not be released and will be routed directly to an RVSF – with the scrap value paid to the owner within 15 days.

For BS-III and below emission standard vehicles, the Delhi High Court and NGT directions have added another layer – these vehicles are on notice separately, and their owners are advised to proactively pursue the scrapping and deregistration route rather than wait for enforcement action, since a voluntary scrapping yields the full scrap value plus the new vehicle incentives, while an impoundment-driven scrapping gives you only the scrap material value without the rebate benefits on a new purchase.

Financial Incentives Under the Delhi Scrappage Scheme

The Delhi government notified a vehicle scrapping and registration incentive scheme in November 2024 specifically to encourage voluntary scrapping of overaged vehicles. Under this scheme, vehicle owners who scrap their old petrol vehicle (over 15 years) or diesel vehicle (over 10 years) at an RVSF and present the Certificate of Deposit receive the following benefits when registering a new vehicle:

The scrap material value itself is determined by the RVSF based on the weight and condition of recoverable materials – steel, aluminium, copper – and is transferred directly to the vehicle owner’s bank account. The V-SCRAP portal also allows multiple RVSF facilities to submit competing bids for your vehicle, which means you can compare the scrap value offers before committing.

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Documents & Forms Required

The RVSF verifies ownership and identity before accepting the vehicle and generating the Certificate of Deposit. The following documents are required at the time of vehicle handover, as specified under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.

Fee Structure

Scrapping itself does not involve a fee paid by the owner to the RVSF – the value flows the other way, with the RVSF paying the owner the scrap material value. However, certain associated steps in the overall deregistration and rebate claim process carry statutory charges at the RTO level.

Note: The road tax rebate percentages above are as per the Delhi government’s notification of November 2024 and are subject to revision. Always confirm the applicable rebate with the Delhi Transport Department or the RTO counter at the time of new vehicle registration. The 25% rebate figure cited under the central Motor Vehicles Act incentive framework applies for some states – Delhi’s own scheme specifies 20% and 15% as noted above. Verify the applicable rate before finalising your new vehicle registration.

Rules & Eligibility

The vehicle scrapping process in Delhi is governed by three overlapping legal frameworks: the Motor Vehicles Act, 1988 (Sections 59(4) and 64(p)), the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 notified by MoRTH, and the Guidelines for Handling End of Life Vehicles in Public Places of Delhi, 2024 issued by the Government of NCT of Delhi.

Which Vehicles Are Eligible for Scrapping Under Delhi Rules

• Petrol / CNG / LPG private vehicles that have completed 15 years from the date of first registration are classified as End of Life Vehicles in Delhi and cannot be renewed for road use in NCT.
• Diesel private and commercial vehicles that have completed 10 years from first registration are classified as End of Life Vehicles in Delhi.
• Government vehicles (Central, State, and UT-owned) that have crossed 15 years are not eligible for re-registration and must be scrapped, as per MoRTH directions.
• Vehicles that fail the Automated Testing Station (ATS) fitness test are also directed for scrapping regardless of age, since their registration cannot be renewed after failure.
• Vehicles with BS-III or lower emission standards face stricter enforcement in Delhi and are advised to pursue voluntary scrapping proactively.

Only Registered Vehicle Scrapping Facilities (RVSFs) Can Issue the Certificates

Under the 2021 Rules, only facilities registered with MoRTH and listed on the V-SCRAP portal are authorised to accept End of Life Vehicles and issue the Certificate of Deposit and Certificate of Vehicle Scrapping. Surrendering your vehicle to an unregistered or unauthorised scrapper – however convenient – means you will not receive a valid CoD, your vehicle will not be deregistered in VAHAN, and you lose all financial incentives including the road tax rebate and registration fee waiver. The RVSF is also required to keep the cut piece of the chassis number in safe custody for six months from the date of CVS issuance for audit purposes.

Hypothecated Vehicles – NOC is Non-Negotiable

If your vehicle’s RC shows a hypothecation entry – meaning a bank or NBFC has a loan lien on it – the RVSF cannot accept the vehicle for scrapping without a No Objection Certificate from the financer confirming the loan is cleared or that the financer consents to the scrapping. Many Delhi vehicle owners with old loans that they believe are repaid but never got the hypothecation formally terminated from the RC run into this problem at the RVSF counter. The hypothecation termination at the RTO must be completed and reflected in VAHAN before the scrapping process can begin.

Impounded Vehicle Timeline Under 2024 Delhi Guidelines

Under the 2024 Delhi Guidelines, a vehicle impounded for the second time, or a diesel transport vehicle over 10 years, will not be released and is sent to an RVSF. The scrap value must be paid to the vehicle owner within 15 days of the vehicle being accepted by the RVSF. Owners of impounded vehicles must act quickly to provide their bank account details and identity documents to the RVSF to ensure the scrap value transfer happens within this window, since delays on the owner’s side do not extend the payment timeline.

Deregistration is the Owner’s Responsibility

The RVSF generates and uploads the CoD and CVS to VAHAN, but the formal deregistration – the RTO updating the vehicle’s status to “Scrapped” in the VAHAN database – requires the owner or their representative to submit the CoD at the relevant RTO. This step is often skipped by owners who assume the RVSF handles everything end to end. It does not. Until the RTO marks the vehicle as deregistered in VAHAN, your name remains as the registered owner, tax notices can still be generated against the vehicle’s registration number, and challans can be issued in your name if the vehicle number is somehow misused. Completing the RTO deregistration step is not optional – it is what gives you full legal closure.

Vehicles Eligible for NOC Transfer Instead of Scrapping

Under the 2024 Delhi Guidelines, an End of Life Vehicle that is impounded for the first time may be released on the owner’s undertaking that it will be removed from Delhi or kept in private parking – not parked in public or shared residential parking. Additionally, vehicles that cannot be used in Delhi due to the age restrictions can apply for an NOC to be re-registered in another state that does not have the same age-based restrictions. This NOC route is an alternative to scrapping and does not yield the scrapping incentives, but it does provide an exit for owners who want to continue using the vehicle in a different state.

Why Choose Kagzikaam

Delhi’s vehicle scrapping process involves three separate systems talking to each other – the V-SCRAP portal, the VAHAN database, and the RTO’s own records – and the owner’s job is only done when all three show the correct status. A CoD sitting in your hands while your vehicle is still active in VAHAN is an incomplete process that leaves you exposed to notices and tax demands. A vehicle scrapped at an unauthorised facility gives you scrap material value but nothing else – no rebate, no deregistration, no legal closure.

Kagzikaam tracks the full chain: RVSF selection from the V-SCRAP portal, document preparation for the handover appointment, CoD receipt and verification, RTO deregistration submission, and VAHAN status confirmation. For owners buying a new vehicle immediately after scrapping, we coordinate the CoD presentation for the road tax rebate claim and registration fee waiver in the same workflow, so neither the scrapping documentation nor the new vehicle paperwork gets held up waiting on the other. We keep you updated at every stage over Whatsapp, so you know exactly where in the process you are at all times.