Official statutory certificate issued under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 and Vehicle Scrappage Policy, comprising the Certificate of Deposit (CoD) and Certificate of Vehicle Scrapping (CVS) issued by a Registered Vehicle Scrapping Facility (RVSF), entitling the owner to road tax waivers and new car purchase discounts
Under MoRTH regulations, the Certificate of Deposit (CoD) is a digital, tradable asset. If you scrap an old car but do not wish to purchase a new vehicle, you can legally sell or transfer your CoD to another new car buyer on the Vahan portal, who can use it to claim motor tax concessions.
đĄ A Vehicle Scrappage Certificate (Certificate of Deposit / CoD) is an electronic digital certificate issued by a government-authorized Registered Vehicle Scrapping Facility (RVSF) via the Vahan portal when an end-of-life vehicle is deposited for dismantling. It automatically triggers deregistration of the vehicle at the RTO, completely freeing the owner from future civil and criminal liabilities, and provides lucrative financial benefits including up to a 25% concession on state road tax, registration fee waivers, and up to a 5% manufacturer discount on purchasing a new vehicle.
Comparing end-of-life vehicle disposal mechanisms in India.
| Parameter | Authorized RVSF Scrappage | Unorganized Scrap Dealer (Kabadi) | RTO 15-Year Fitness Renewal |
|---|---|---|---|
| Legal Deregistration | Automatic digital RC cancellation on national Vahan portal | Zero legal deregistration; vehicle remains active in your name | Extends registration validity for 5 years upon passing test |
| Tax Incentives | Up to 25% road tax rebate + 5% OEM discount on new vehicle | Zero tax incentives or new vehicle discounts | Owner must pay additional Green Tax and re-registration fees |
| Owner Liability Protection | 100% legally shielded from any future misuse of chassis | High criminal risk; stolen parts can be traced back to owner | Owner continues to bear all civil and third-party liabilities |
| Environmental Standard | Eco-friendly recycling: safe draining of oils, gases, and batteries | Heavy soil and groundwater toxic contamination | Vehicle continues to emit emissions on public roads |
Vehicle handover, physical inspection, and digital Certificate of Deposit (CoD) issuance takes 1 to 2 working days at a registered facility; full physical dismantling and Certificate of Vehicle Scrapping (CVS) completed within 30 to 60 days.
Zero government fee for scrapping; the RVSF pays the owner a transparent scrap value (typically 4% to 6% of the ex-showroom price of a new equivalent vehicle) based on metallic weight.
Registered owner of the vehicle; vehicle must have clear title with zero pending police theft/crime cases, zero active court attachments, and cleared bank hypothecation liens.
Owners of end-of-life vehicles (ELVs), unfit commercial vehicles (>15 years), and private vehicles (>20 years or deregistered in Delhi NCR due to NGT orders) seeking legal dismantling; buyers purchasing new cars or commercial trucks looking to claim 15%â25% road tax rebates and registration fee waivers.
Visit the official MoRTH Scrappage portal (vahan.parivahan.gov.in) and locate a government-authorized Registered Vehicle Scrapping Facility (RVSF) near your city.
Log into Vahan Citizen Services, select 'Application for Scrapping of Vehicle', choose your preferred RVSF, and authenticate via Aadhaar OTP.
Deliver the vehicle to the RVSF yard (or request free towing). The facility inspects the engine number, chassis number, and verifies ownership against NCRB stolen vehicle databases.
The RVSF evaluates metallic body weight, tire condition, and battery, then transfers the agreed scrap compensation directly to the owner's bank account via RTGS/NEFT.
The RVSF generates the digital Certificate of Deposit (CoD) on the Vahan system. The vehicle's registration status changes to 'Deposited for Scrappage'.
The RVSF cuts the chassis number plate in half and uploads video evidence to the Vahan system. The RTO cancels the RC, and a final Certificate of Vehicle Scrapping (CVS) is issued.
Follow these steps to claim monetary incentives under the Vehicle Scrappage Policy.
When purchasing a new personal or commercial vehicle, submit the CoD certificate number to the authorized automobile dealer.
Automobile manufacturers (Maruti, Tata, Hyundai, Mahindra, etc.) offer an ex-showroom discount of up to 5% against a valid CoD.
During new vehicle registration on Vahan, the system automatically applies a concession of up to 25% on non-transport road tax (up to 15% on commercial vehicles).
If you are not buying a new vehicle, log into the Vahan CoD Marketplace, list your certificate, and transfer it securely to another buyer for financial consideration.
Download the verified CoD PDF to claim new vehicle purchase incentives.
Visit vahan.parivahan.gov.in and click on 'Scrappage Services' > 'Download Certificate of Deposit'.
Enter your Vehicle Registration Number and the Scrappage Application Number.
Enter the OTP sent to the registered mobile number.
Download the official CoD PDF bearing the unique 16-digit Certificate Number, RVSF license details, and digital verification QR code.
Remedies when facing obstacles during vehicle scrappage.
| Obstacle / Scenario | Governing Rule | Actionable Remedy |
|---|---|---|
| Vehicle chassis number is rusted or corroded and unreadable | RVSF physical inspection guidelines | The RVSF cross-verifies secondary identifiers (engine number, transmission tag, and ECU electronic scan) to establish identity before processing. |
| New car dealership refuses to apply the 5% manufacturer scrappage discount | SIAM & MoRTH voluntary OEM discount advisory | Present the official MoRTH circular to the dealership management; major automobile manufacturers (Tata, Maruti, Hyundai) have signed binding MoUs with MoRTH honoring CoD discounts. |
| Original RC is lost but car needs to be scrapped immediately | Rule 10(2) of RVSF Rules 2021 | Lodge an online police lost report (NCR) and submit an indemnity bond; the RVSF verifies digital records on Vahan without requiring a fresh physical duplicate RC. |
A Certificate of Deposit (CoD) is issued immediately upon handing over the vehicle to the RVSF, acting as the tradeable voucher for new car purchase tax discounts. The Certificate of Vehicle Scrapping (CVS) is issued later once the vehicle has been physically cut, crushed, and completely dismantled.
Under Central Motor Vehicles Rules amendments, state governments provide up to a 25% concession on the motor vehicle road tax for non-transport (personal) vehicles and up to a 15% concession for commercial transport vehicles against a valid Certificate of Deposit.
Yes. The Certificate of Deposit is a legally tradable digital voucher. If you scrap an old car but do not plan to buy a new vehicle within 3 years, you can sell your CoD to another new car buyer on the Vahan portal, who can use it to claim motor tax concessions.
For private vehicles, scrappage is voluntary unless the vehicle fails automated fitness testing and cannot be mechanically repaired. However, in Delhi NCR, diesel vehicles older than 10 years and petrol vehicles older than 15 years are mandatory end-of-life vehicles under Supreme Court and NGT orders and must be scrapped or relocated.
Official policy and guidelines governing Registered Vehicle Scrapping Facilities (RVSF).
National vehicle database for digital CoD generation and RTO deregistration.
Mandatory statutory roadworthiness certificate issued under Section 56 of the Motor Vehicles Act, 1988 and Rule 62 of the Central Motor Vehicles Rules, 1989 (Form 38) certifying that a commercial transport vehicle or 15-year-old private vehicle complies with mechanical safety and emission standards
Statutory clearance certificate issued under Section 48 of the Motor Vehicles Act, 1988 and Rule 58 of the Central Motor Vehicles Rules, 1989 (Form 28) by the parent Regional Transport Office (RTO), certifying that a motor vehicle has no pending criminal cases, unpaid road taxes, or active bank loans, permitting legal re-registration or transfer to another state or district
Guide to obtain duplicate driving license or RC
Pollution Under Control certificate for vehicles
Official certified evidentiary transcript issued by the Regional Transport Office (RTO) under Rule 23 of the Central Motor Vehicles Rules, 1989 (Form 54 / B-Register Extract), documenting an individual's complete driving history, original issue dates, vehicle class endorsements, and disciplinary records
Parivahan Vahan portal, RC transfer (Form 29/30), duplicate RC (Form 26), status check & DigiLocker e-RC
Centralized commercial transport authorization issued under the All India Tourist Vehicles (Permit) Rules, 2023 and Section 88(9) of the Motor Vehicles Act, 1988 via the Parivahan portal, granting tourist buses, luxury maxi cabs, and tourist vehicles seamless inter-state passenger transit across India without physical border tax checkpost stoppages
Governed by the Central Motor Vehicles (Motor Vehicles Scrapping Facility) Rules, 2021 and National Vehicle Scrappage Policy notified by the Ministry of Road Transport and Highways (MoRTH).
National Vehicle Scrappage Portal - MoRTH â