Current Status of RTO Rules passed for Car Scrapping in Delhi-

NCR
By- Diya Sareen

In 2015 the RTO had laid down certain rules for the scrapping of old vehicles in India. As per
the norm, cars that were older than 15 years cannot be used. Though they can be transferred to a
new state for re-registration since it is a hassle one can consider scrapping of the car. 

In India, Car Scrapping isn't an organized activity just like the sale of used cars. Car owners have
the choice to sell or transfer their vehicles to a neighboring state before their Registration
Certificate (RC) expires. This must be done before the expiry of the RC, as the RTO will not
renew the RC after the car completes 15 years.

When a car is transferred to a different state, it'll need to be re-registered at the new RTO, and
this registration has got to be updated within the records of the old RTO. Otherwise, there's
always a risk of the car getting used for illegal activities. At this point, Car scrapping becomes an
option in front of a car owner who is not keen on transferring the vehicle to another state.

After the National Green Tribunal in its order has banned the use of cars that are older than 15
years in Delhi. The Regional Transport Offices (RTOs) had stopped re-registering these
vehicles. Till now there hasn’t been any uniform policy for the old vehicles.

The Union Ministry of Road Transport and Highways had given time till 15’November2019 for
stakeholders, including the general public, to make comments or suggestions on the guidelines.
The rules and guidelines given by the NGT are as follows:

NGT's ruling and Government's Guidelines on Car Scrapping:

1. The aim behind these proposed changes is claimed to be a bid to promote the adoption of
electric vehicles for various uses.
 2. The Union Ministry of Road Transport and Highways (MoRTH) had recently released
the 'Draft Guidelines for fixing, Authorization and Operation of Authorized Vehicle
Scrapping Facility (AVSF).'

3. These guidelines are for establishing vehicle scrapping units only. However, currently,
there are neither any fiscal incentives nor stringent regulatory requirements that would
force vehicle owners to dispose-off old vehicles.

4. The guidelines apply to vehicle owners, automobile collection centers, existing

automobile scrapping, and recycling facilities and recyclers of all kinds of automotive
waste products. The guidelines provide granular details on the land requirements, criteria
for the scrapping of vehicles, scrapping procedures, required audits, certificates, and
finances.

5. The National Green Tribunal (NGT) noted that the number of 'end of life vehicles' will
be over 21 million by 2025. Approximately nine million vehicles, of which 75% are two-
wheelers, are going to be due for scrapping by next year.

6. Currently, this process is only voluntary.

7. Further, the govt can leave exemption of additional fees like road tax and registration
fees, for all new vehicles purchased against a Certificate of auto Scrapping as discussed
in these guidelines.

The government is additionally watching these scrapping centers to make employment within
the country, with each centre requiring around 25 people.

Benefits of Scrapping Old Commercial Vehicles:

The policy proposed that the owners of vehicles scrapped are going to be susceptible to receive
the subsequent incentives:
  Half the excise duty and road tax for a replacement vehicle.
 Discounts from auto manufacturers.
 Fair value for the scrapped vehicle

These discounts are expected to bring down the cost of the purchase of a new vehicle by about
15%. At the recycling centre, the vehicle owners are going to be provided a certificate which
will need to be submitted at the dealership for availing the incentives.

Judicial Pronouncements concerning Petrol and Diesel Vehicles:

1. In 2015, the National Green Tribunal (NGT) had banned the plying of petrol vehicles
older than 15 years and diesel vehicles older than 10 years in the National Capital Region
(NCR).

2. It also banned the parking of 15-year-old vehicles in any public area.

3. On Oct 29, 2018, the Supreme Court endorsed the NGT order and directed that such
vehicles be impounded.

4. Further, in 2019, the NGT had issued a series of orders directing the Delhi-NCR
Government to cancel the registration of 10-year-old diesel vehicles.

5. The Supreme Court has admitted an appeal from the Central Government seeking to
vacate the NGT's order by which NGT had refused to lift the ban on diesel vehicles on
NCR Roads.

Contentions raised by the Centre:

The following contentions had been raised by the Centre in its Appeal:

1. The petition was filed in the Supreme Court, which said that the ban was affecting the
weaker sections of the society economically.
 2. The Centre had pleaded defense that fueled diesel vehicles, school buses, tractors, and
private vehicles should be exempted from the blanket ban.

3. The Centre sought an immediate stay of the Tribunal decision as such; an order would
cause economic hardship to the owners of the vehicles whose very livelihood depends on
these vehicles. Further, it would dissuade the potential customers to buy diesel cars as
compared to petrol cars thus discriminating citizens based on the type of fuel, which is
arbitrary.

4. The Centre had submitted that the power to fix the age of the vehicle lies with the Central
Government and provision of cancellation of registration had been laid down in the
automobiles Act, it had been further contended that the Tribunal order violated Section
55 of automobiles Act.

5. The Centre argued that diesel vehicles have higher fuel efficiency which leads to 10 to 15
percent lower emission of carbon dioxide as compared to petrol vehicles.

Latest updates in the Scrapping Rules:

 The government has proposed certain amendments to the Central automobile Rules.

 The proposal includes a scrappage scheme for vehicles that are 15 years or older.

 Fitness certificate renewal for vehicles that are 15 years or older to be reduced to 6
months.
  Increased fee for fitness tests proposed for medium and heavy automobiles - INR 1,200
[USD 16 approx.] for manual and INR 2,000 [USD 27 approx.] for automatic vehicles.

 Fee for new vehicle registration and renewal of registration for medium and heavy
vehicles to be set at INR 20,000 [USD 278 approx.] and INR 40,000 [USD 557 approx.],
respectively.

 The registration fee for new imported vehicles with four or more wheels to be fixed at
INR 20,000 [USD 278 approx.] and renewal of registration fee to be set at INR 40,000
[USD 557 approx.].

References:
1. https://www.lexology.com/library/detail.aspx?g=189e052c-c601-454c-b6db-
2600c4999a94

2. https://www.mondaq.com/india/rail-road-cycling/875768/rto-rules-for-car-scrapping-in-
delhi-ncr