Deregistration is the official cancellation of your vehicle registration before it is scrapped. It ensures that your vehicle is permanently removed from the government’s transport database and that you’re no longer legally responsible for it. Without deregistration, the vehicle stays active in your name even after scrapping - a major legal risk.
Deregistration means cancelling a vehicle’s registration certificate (RC) when it is no longer roadworthy or has reached its end of life. The process marks the vehicle as “scrapped” or “non-usable” in the VAHAN system, preventing future misuse.
Because it legally ends your ownership and prevents any future misuse of your vehicle details. When you scrap a vehicle without deregistering, it remains active in VAHAN records. If parts or chassis are reused illegally, you can still be held liable.
Reasons:
The process is governed by the Ministry of Road Transport & Highways (MoRTH) and integrated with the VAHAN portal. MoRTH’s Vehicle Scrappage Policy 2021 mandates that only authorized facilities (RVSFs) can scrap vehicles, and deregistration must happen through VAHAN to maintain data integrity.
Framework Overview:
You need ownership and identity documents to prove legal possession and initiate cancellation. Each RTO verifies these before issuing deregistration approval.
The deregistration process is digital, done through VAHAN once you receive your COD. You or your authorized scrapper submit documents, and the RTO updates the vehicle status to “Scrapped.”
RVSF are government-approved centers authorized to dismantle vehicles and issue CODs. They link directly with VAHAN and ensure your RC cancellation and recycling are legally processed.
You remain the legal owner in VAHAN records even after scrapping. Unauthorized scrappers don’t update official data, creating risk of identity misuse, fake resale, or future legal penalties
It gives legal closure and helps you claim financial incentives safely. Authorized deregistration ensures full transparency, safety, and access to government-backed benefits.
Ownership transfer passes the vehicle to another person; deregistration removes it from the system permanently. Transfer means the vehicle still runs under a new owner. Deregistration means the vehicle is scrapped and non-usable.
| Criteria | Ownership Transfer | Deregistration |
|---|---|---|
| Vehicle Status | Active | Permanently closed |
| New RC | Issued to buyer | Cancelled |
| VAHAN Record | Updated with new owner | Marked as scrapped |
| Purpose | Sale | End of Life |
Skipping formalities or using unregistered scrap dealers are the most common mistakes. These lead to invalid CODs and incomplete deregistration.
COD and CVS are proof that your vehicle has been legally scrapped and deregistered. RTO uses these certificates to verify dismantling and update the vehicle’s status in VAHAN.
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Deregistration is not optional - it’s the foundation of legal vehicle scrapping in India. It protects you from liability, fraud, and environmental violations while ensuring compliance with the National Vehicle Scrappage Policy.
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