Was your old car scrapped or sold off? Delhi govt to order enquiry

The inquiry is set to investigate possible lapses, mismanagement, and irregularities by RVSFs in seizing, scrapping, and releasing vehicles, said an official, adding that departments involved in the drive, like the Transport department, the Traffic Police, and the MCD, will be asked to submit a detailed report.

According to officials, ELV owners have complained to the Transport department that RVSFs authorised by it to seize and scrap overaged vehicles charged vehicle owners extra money for towing, handling, and logistical charges.

“Many also alleged they did not receive the scrap value on time and their vehicles were not released by the RVSFs, despite receiving the department’s permission to do so. Further, we have observed that even if the vehicle owners were paid, they received reduced scrap value after deductions for towing and parking charges, in violation of guidelines,” said a senior official.

Moreover, officials said, many have complained that the RVSFs were not providing the Certificate of Deposit (COD) to vehicle owners on time and “were generating wrong COD… and trading it without owner consent”.

“As per ELV guidelines, the COD and Certificate of Vehicle Scrapping (CVS) are issued to those who get their ELVs scrapped from a RVSF… The owners can show the COD to get a discount on purchasing a new vehicle. But the scrappers have been trading by selling CODs illegally…,” said the senior official.

Under the discount scheme, while the concession is 20% for new non-transport petrol/ CNG/LPG vehicles and 15% for diesel vehicles, for transport vehicles, the concession is 15% for petrol/CNG/LPG and 10% for diesel.

However, tax concessions cannot exceed 50% of the scrap value. Also, the COD is only valid for three years from the date of issuance. Further, no concessions will be available for government-owned or impounded vehicles, according to norms.

“Also, while RVSFs show in their records that vehicles have been scrapped, in reality, they sell these vehicles in other states illegally… Many people have said they have received messages about vehicles with their numbers paying toll tax in different states,” the official added.

Officials said if the people do not claim their vehicles from RVSFs in 15 days, the RVSFs are to deposit the scrap value into the government’s treasury. But this has not been done.

The Transport department, a few months ago, had issued showcause notices to 11 authorised RVSFs in this regard, said officials. It had also asked all the RVSFs to deposit the full scrap value in the government treasury.

“The scrappers are yet to submit the money. There are huge gaps… these scrappers also do not conduct audits and keep records as per guidelines for handling ELVs,” said an official.

The Transport department had first launched an aggressive drive against overaged petrol and diesel vehicles in March 2023. However, after several vehicle owners moved court against the drive, the court directed the department to come up with a policy for the scrapping and handling of these vehicles.

While last year, 39,273 vehicles were scrapped, the figure was 22,397 in 2023, said officials.