1. Executive Overview & Statutory Background
Under Section 55 of the Motor Vehicles Act 1988, when a motor vehicle is destroyed, rendered permanently incapable of use, or handed over for scientific recycling, the owner must report the matter within 14 days and surrender the RC for formal cancellation.
Under the regulatory architecture framed by the Ministry of Road Transport and Highways (MoRTH), all state registering authorities operate through the centralized Vahan 4.0 database engine managed by the National Informatics Centre (NIC). This system guarantees that every vehicular transaction is logged into a unified, cryptographically secure ledger visible across national police, transport, and insurance networks.
Statutory Rule Reference
Form 24 (Intimation of Destruction/Scrapping of Vehicle)
Eligibility Criteria
Owners of unfit, obsolete, end-of-life vehicles (ELVs) or accident total loss vehicles.
2. Step-by-Step Procedure (Online & Offline)
Follow this sequential procedure to ensure zero rejection by the Motor Vehicle Inspector (MVI):
Hand Over Vehicle to Authorized RVSF
Deliver old or damaged vehicle to a government-authorized Registered Vehicle Scrapping Facility (RVSF).
Receive Certificate of Deposit (CoD)
RVSF safe-dismantles the vehicle, cuts out chassis piece, and issues the official digital Certificate of Deposit on Vahan.
File Application for RC Cancellation
Submit Form 24 on Parivahan alongside the Certificate of Deposit and surrender the original smart card.
RTO Verification & De-Registration
RTO cancels vehicle registration entry in the national registry and issues non-use/scrappage endorsement.
Avail Tax Incentives on New Vehicle Purchase
Use the Certificate of Deposit to claim up to 25% road tax discount and waiver of registration fees on your next new vehicle purchase.
3. Mandatory Documents Checklist
Every applicant must assemble the following documentation before visiting the RTO or completing digital file upload:
- Original RC Book / Smart Card
- Cutout piece of Chassis Number plate taken from scrapped vehicle
- Certificate of Deposit (CoD) / Certificate of Vehicle Scrapping (CVS) from Registered Vehicle Scrapping Facility (RVSF)
- Insurance Total Loss settlement letter (for accidental total loss)
- Owner’s ID proof and Aadhaar card
- No Objection Certificate from Financier if loan was active
4. State-Specific Variations & Local RTO Rules
The National Vehicle Scrappage Policy provides uniform benefits across participating states.
5. Statutory Penalties & Late Fees
Failure to report scrapped vehicle carries fines and statutory accountability for illegal chassis cloning.
6. Electronic Record Validity (DigiLocker / mParivahan)
RVSFs are connected via API directly to the Vahan Scrappage portal, enabling paperless digital Certificate of Deposit issuance.