A Certificate of Deposit (COD) is an official proof that your vehicle has been submitted to an authorized scrapping facility. It serves as a digital and legal acknowledgment that your vehicle is ready for dismantling under the Vehicle Scrappage Policy 2021. Without it, the deregistration and incentive process cannot begin.
COD is a government-recognized document issued after your vehicle is handed over for scrapping. It confirms the vehicle’s ownership transfer to an Authorized Vehicle Scrapping Facility (RVSF) and triggers eligibility for benefits such as rebates and tax incentives.
COD was introduced to ensure transparency and eliminate illegal scrapping. Earlier, many vehicles were dismantled informally without deregistration. COD now creates a traceable record, verifying that the vehicle is scrapped legally.
Objectives:
The COD is issued by the Registered Vehicle Scrapping Facility (RVSF) after document verification. Once ownership, RC, and identity documents are verified, the RVSF generates the COD through VAHAN and hands it to the vehicle owner.
COD confirms acceptance of the vehicle for scrapping, while CVS confirms that scrapping is completed. COD is the starting proof of handover; CVS is the final proof of dismantling and deregistration.
| Parameter | COD | CVS |
|---|---|---|
| Issued When | At the time of handover | After scrapping & deregistration |
| Purpose | Proof of vehicle submission | Proof of complete dismantling |
| Issued By | Authorized Scrapper | RTO/VAHAN post-update |
| Use | Claim incentives | Legal closure |
COD acts as a discount voucher when buying a new vehicle. It allows you to claim OEM-backed benefits, tax concessions, and registration fee waivers during a new vehicle purchase.
COD remains valid for three years from the date of issue. Within this period, you can redeem incentives and complete deregistration. After expiry, the certificate becomes invalid for claims but remains proof of scrapping submission.
Many assume COD is optional or issued after scrapping - both are incorrect.
Reality: Only authorized RVSFs issue COD.
COD = handover proof; CVS = completion proof.
COD may be delayed if ownership or document details don’t match government records.
COD ensures your ownership ends legally at the time of handover.
Authorized RVSFs are the only entities legally permitted to dismantle vehicles and issue valid COD and CVS recognized by VAHAN. Scrapping through an authorized facility ensures that your vehicle is deregistered, dismantled, and recorded under MoRTH rules. Unauthorized dealers cannot update VAHAN, cannot issue COD/CVS, and leave you legally responsible for a vehicle you no longer own.
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The Certificate of Deposit (COD) is the backbone of India’s legal scrapping framework. It proves lawful handover, enables government incentives, and safeguards owners from post-scrap complications.
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No. Only government-approved RVSFs can issue COD.
Yes. RTO requires COD as proof before marking your RC as “scrapped.”
Check the status on the VAHAN portal using the vehicle number and RVSF details.
Clear hypothecation first; COD can’t be issued for loan-bound vehicles.
Yes. COD is tradable and Can be transferred to family members or friends.
Yes. COD is compulsory under MoRTH’s Vehicle Scrappage Policy 2021. Without COD, your vehicle’s deregistration and benefits cannot be processed. Unauthorized dealers cannot legally issue it.
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