India publishes rules for vehicle scrapping facilities

On September 24, 2021, the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 were published in India and came into force on the next day. These rules, which establish a registration system for vehicle scrapping facilities, stipulate the procedures for setting up a Registered Vehicle Scrapping Facility (RVSF), its responsibilities, inspection and audit, and the scrapping procedure. The term “RVSF” means any facility that holds a certificate of registration issued under these rules and that dismantles and scraps vehicles. The rules apply to all categories of vehicles, the last registered owners of them, automobile collection centers, automobile dismantling, scrapping and recycling facilities and recyclers of automotive waste products.

The rules can be downloaded at the following URL.
https://egazette.nic.in/WriteReadData/2021/229931.pdf

Registration of RVSF

Any legal entity that holds the following documents may own and operate a RVSF. Form-1 along with a registration fee and a security deposit is to be submitted to the Registration Authority of the concerned State or Union Territory Government.

• Certificate of Incorporation or Shop and Establishment Act Registration or Udyam Aadhar*;
• Valid Goods and Services Tax (GST) registration; and
• Valid Permanent Account Number (PAN)
  *Identification number issued at the time of registration of Micro, Small and Medium Enterprises (MSME) under the Micro, Small and Medium Enterprises Development Act, 2006

Responsibilities of registered scrapper** and RVSF

• To access the VAHAN database of vehicle registration in order to register vehicles for proper disposal and issue a Certificate of Deposit and Certificate of Scrapping
• To verify the vehicle’s record with the database of the stolen vehicles of the National Crime Records Bureau and the local police
• To verify personal identification of the owner of the vehicle to be scrapped or his authorized representative and maintain the copy of them at least six months
• To keep records of the transaction of vehicles and scraps generated, its responsible disposal to recyclers and all equipment in the RVSF, and make them available for inspection by the Registration Authority or designated officer of the State or Union Territory Government
• To issue a digital Certificate of Vehicle Scrapping which includes a photograph of the detached chassis after completing the necessary processing and upload it to VAHAN as well as to inform the competent authority of the State or Union Territory Government
• To install CCTV cameras at the scrapping yard and the reception area and maintain records of scrapping for three months
• To obtain the certification of ISO 9001, ISO 14001 or ISO 45001 within 12 months of the commencement of operation
  ** a person, firm, society, trust or company that owns and operates a RVSF

Validity and renewal of registration

The registration is valid for a period of 10 years, and may be extended for a further 10 years, provided that the Registered Scrapper complies with the provisions of Rule 14 (Requirements for Audits and ISO Certifications). Application form (Form-1), a renewal fee and a security deposit are required for the renewal.

Audit

The RVSF will be audited by the Registration Authority or any designated bodies and the audit report is to be uploaded by the Registered Scrapper on a specified portal every year for a financial year or part thereof. The deadline for the submission is May 31 of the following financial year.

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NOTE:
On September 16, 2022, the Indian Ministry of Road Transport and Highways (MORTH) published and enforced the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Amendment Rules, 2022, which partially amend the Rules of 2021. See more details in the following:
India amends Rules on registration and responsibilities of vehicle scrapping facilities