Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021

Ministry of road transport and highways announced the detailed procedure of setting “Registered Vehicle Scrapping Facility (RVSF)” under the “vehicle scrapping policy”.

Vehicle Scrapping Policy

  • Vehicle Scrapping Policy was launched in August 2021 by prime minister Narendra Modi last month.
  • It was announced by Union finance minister Nirmala Sitharaman in Budget 2021.

About the rules

Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 were released on March 15, 2021 by the Ministry of Road Transport and Highways (MORTH). Provisions under the rules lay down the procedure of establishing Registered Vehicle Scrapping Facility (RVSF). Provisions will be applicable to all vehicles and their last registered owners, recyclers, Automotive Dismantling, Automobile collection centres and Scrapping & Recycling Facilities.

Provisions of the rules

  • As per rules, RVSF will be provided connectivity and access of the VAHAN database of vehicle registration with password protected user ID.
  • RVSF will be authorized to make suitable entries for scrapping the vehicle and for issuing Certificate of Deposit & Certificate of Scrapping.
  • State Government or Union Territory Governments will take into account the eligibility criteria while granting authorization to any RVSF.
  • Ministry will set up a “Single Clearance Portal” to register or renew the registration of such facilities. Entire process will be completed within 60 days.
  • Registration of RVSF will be valid for 10 years and can be renewed for 10 more years, at a time.
  • RVSFs will also get the access of National Crime Records Bureau (NCRB) to check of any stolen vehicle was bought for scrapping.
  • Vehicle registered in any state, can be scrapped at any of the registered facility in other states.




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