Vehicle scrapping is a regulated process for dismantling old vehicles safely and legally. Authorized scrapping ensures compliance with the Ministry of Road Transport & Highways (MoRTH) rules and environmental norms. Unauthorized scrapping skips documentation, taxes, and eco-friendly disposal.
Key Points:
- Authorized centers are government-approved Registered Vehicle Scrapping Facilities (RVSFs).
- Unauthorized dealers operate without VAHAN integration or compliance certificates.
- Choosing the right channel protects you legally and financially.
How Unauthorized Scrapping Works
Unauthorized scrapping happens when vehicles are sold to local scrap dealers without legal dismantling or deregistration. These dealers bypass RTO documentation, don’t update the VAHAN portal, and may reuse your chassis or parts illegally - putting your name at risk even after sale.
Steps Used by Unauthorized Dealers:
- Offer cash-only deals without paperwork.
- Skip RC cancellation and issue no Certificate of Deposit (COD).
- Resell usable parts to illegal refurbishers.
- Dump hazardous waste without environmental care.
Result: You stay the registered owner on government records, liable for future misuse.
Legal Differences Between Authorized and Unauthorized Scrapping
Authorized scrapping follows MoRTH’s Vehicle Scrappage Policy 2021; unauthorized scrapping violates it. Only authorized centers can issue a valid Certificate of Deposit (COD) and Certificate of Vehicle Scrapping (CVS), ensuring deregistration from VAHAN.
| Criteria |
Authorized Scrapper |
Unauthorized Dealer |
| Government Approval |
Licensed RVSF |
None |
| VAHAN Integration |
Yes |
No |
| RC Deregistration |
Automatic |
Not Done |
| Legal Safety |
100% compliant |
Owner remains liable |
| Payment Transparency |
Bank transfer + receipt |
Cash only |
| Environmental Process |
Pollution-controlled dismantling |
Hazardous dumping |
Documents You Receive from an Authorized Scrapper
Authorized scrappers issue two main documents: Certificate of Deposit (COD) and Certificate of Vehicle Scrapping (CVS). These are official proof that your vehicle is deregistered and dismantled under government norms, qualifying you for road-tax rebates.
Documents Provided:
1. Certificate of Deposit (COD):
- Proof of scrapping initiation.
- Used to claim road tax rebates when purchasing a new vehicle. In addition, some vehicle manufacturers may offer extra discounts beyond the road tax rebate.
2. Certificate of Vehicle Scrapping (CVS):
- Final proof of dismantling.
- Confirms removal of your vehicle record from VAHAN.
3. Payment Invoice/Receipt:
- Shows metal weight and valuation breakdown.
Risks of Choosing Unauthorized Scraping Dealers
Selling to unauthorized dealers can cause legal, financial, and environmental problems. Your car remains active in government records, which means if it’s reused in a crime or accident, you’re accountable. You also lose monetary benefits and risk fines.
Main Risks:
Legal Liability
- Your vehicle remains registered in your name even after selling it.
- If the scrapped chassis or engine is reused in crime, smuggling, or accidents, the RTO and police records will trace ownership back to you.
- You can face notices, challans, or even FIRs for a vehicle you no longer possess.
Example: Many unauthorized scrappers strip a car for parts and sell the body under fake RCs. On paper, the original owner is still responsible, causing long-term legal troubles.
Financial Loss
- No Certificate of Deposit (COD) means you cannot claim:
- Road-tax rebates (up to 25%) on new vehicles.
- Vehicle Manufacturer discounts are offered for scrapped vehicles under the national policy.
- You also lose the metal-weight-based valuation transparency that authorized scrappers provide.
- Unauthorized dealers often pay high cash amounts and manipulate vehicle weight or part prices.
Rsult: Legally scrapping a vehicle provides multiple upfront and future monetary benefits as incentives under the official Vehicle Scrappage Policy.
No Official Proof of Deregistration
- Authorized dealers upload all records to the VAHAN portal, triggering automatic RC cancellation.
- Unauthorized ones do not, which means your car is still shown as active.
- Without COD and CVS, you cannot prove that you’ve legally scrapped your vehicle.
Consequences:
- RC remains live → You’re still the owner.
- Insurance and RTO reminders continue.
- You may be billed for pending road tax or toll violations.
Data and Identity Misuse
- Your RC, insurance copy, or PAN may be photocopied and used to forge ownership documents.
- Fraudulent dealers can create duplicate RC books or sell your engine number to other buyers.
- This exposes you to identity misuse and legal complications if those papers are linked to crimes.
Safety Tip: Always surrender RC and number plates only after dealer verification on VAHAN.
Environmental and Ethical Impact
- Unauthorized scrapyards rarely follow pollution-control norms.
- They burn or dump hazardous materials like oil, coolant, plastic, and lead batteries into soil or drains.
- These practices violate CPCB (Central Pollution Control Board) guidelines, harming public health and local ecology.
By contrast: Authorized facilities use scientific dismantling - draining fluids, segregating metals, and recycling components safely.
Reuse of Unsafe Vehicle Parts
- Engines, axles, and braking systems from unauthorized scrapyards often enter the grey market.
- These reused parts are fitted into unsafe vehicles or reassembled illegally.
- Such actions contribute to road accidents, emissions, and mechanical failures.
Impact: Even though you sold the car, its parts may harm others - ethically and legally.
No Accountability or Support
- Once payment is made in cash, there’s no after-service or accountability.
- If your car is found in any incident later, you cannot trace or contact the dealer.
- No customer support, no grievance redressal, no documentation trail.
Remember: Authorized RVSF (like Mariinox) maintain a digital record, offer invoices, and are accountable under MoRTH regulations.
How to Verify if a Dealer Is Authorized
Check if the dealer is listed as an RVSF (Registered Vehicle Scrapping Facility) on the VAHAN portal or state transport website. Authorized scrappers have a unique registration number issued by MoRTH. Their name, address, and validity can be verified online. For Mariinox, refer to Segatech Solutions - The parent company under which Mariinox operates as a brand.
Steps to check dealer authorization
- Visit VAHAN Portal: https://vahan.parivahan.gov.in/
- Go to the “Vehicle Scrapping” Section.
- Select Your State/UT - e.g., Uttar Pradesh, Delhi NCR.
- Check the List of Authorized RVSFs.
- Confirm:
- Registered name matches the dealer.
- Active validity period.
- MoRTH-issued authorization number.
- Ask Dealer to Show:
- RVSF license copy.
- Sample COD/CVS format.
- Company GST invoice.
- Additional Verification Tips:
- Avoid dealers offering “cash only” without paperwork.
- Ensure payment is via official bank account.
- Ask for photos/videos of vehicle dismantling for record.
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Conclusion
Authorized scrapping is the only legal and safe way to dispose of your old vehicle. It protects your ownership status, ensures eco-friendly disposal, and gives you legitimate financial benefits. Unauthorized scrapping, by contrast, risks fines and identity misuse.
