Delhi Government to Initiate Enquiry into Registered Vehicles Scrapping Facilities

The Delhi government is preparing to initiate an enquiry into registered vehicles scrapping facilities (RVSFs), amid rising complaints from owners of old vehicles. The complaints alleged the involvement of RVSFs in malpractices and mismanagement in handling end-of-life vehicles (ELVs).

The Environment Minister of the capital city, Manjinder Singh Sirsa, confirmed that a probe has been ordered to investigate the functioning of some RVSFs authorised by the government to impound and scrap overaged vehicles. Some of these facilities may be violating protocols and exploiting vehicle owners.

According to senior officials of the Transport Department, Delhi Traffic Police, and Municipal Corporation of Delhi (MCD), a detailed report needs to be submitted on the conduct of these facilities. The investigation team will uncover whether scrappers have failed to comply with existing norms of towing, scrapping, and providing compensation to owners. The owners of scrap vehicles have also raised several concerns, like overcharging for towing and handling of the vehicles, while others also claim that they did not receive the promised scrap value and were forced to wait for a prolonged period, despite obtaining departmental clearances for the release of dues. Alongside, some complainants have received reduced payments after unauthorised deductions, in violation of the scrapping guidelines of Delhi.

Senior officials also flagged irregularities in issuing the Certificate of Deposit (COD), a critical document for securing tax concessions on new vehicle purchases. “There are reports that some RVSFs are trading CODs without the vehicle owner’s knowledge or consent… In several cases, the CODs were either delayed or fabricated, and some scrap vehicles were never actually dismantled but sold illegally in other states,” officials told the national media.

Under the new scrapping policy, discounts ranging from 10 to 20% will be provided on the purchase of new vehicles, depending on their fuel type and category. These benefits are only valid for three years from the issuance of the COD and do not apply to government or impounded vehicles. In March 2023, the government intensified its crackdown on overaged vehicles. Despite show-cause notices to 11 scrappers and orders to deposit scrap value for unclaimed vehicles, implementation has been poor, and officials also cited inadequate record-keeping and auditing at these facilities.

The big plan of the government now is to comprehensively audit and regulate, with any overhauls to address violations and ensure transparency in the scrappage process.

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