If you have recently scrapped your old car, or are thinking of doing so, don’t forget to cancel your car’s Registration Certificate (RC).
Most people assume that car scrapping is the last step of the process. Yet, the truth is that the real responsibility begins right after that. RC is a legal document, and as long as it is valid, you are responsible for any illegal activity associated with it. This holds significance even if your car is no longer running on the road.
Certified Registered Vehicle Scrapping Facility (RVSP) partners like Spinny help you in this process. However, after going through this article, you should be able to manage it by yourself.
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Why is it Necessary to Cancel the RC?
When you scrap your old or unusable car, the story does not end there. In fact, one more important step remains and that is to cancel the RC of the vehicle.
You may neglect this process thinking that it does not matter. Let us understand why is cancelling RC important after completing the car scrap process:
1. Freedom from Legal Responsibility
Is your vehicle scrapped but RC is still valid? In this case, the vehicle will still be registered in your name in the government records. Now imagine, if a scrap dealer uses that vehicle for illegal purposes or the vehicle comes back on the road without your knowledge, then you shall be held responsible for it.
By canceling the RC, you ensure that you no longer have any legal responsibility towards the scrapped vehicle.
2. Preventing the Possibility of Misuse
Many times old vehicles are illegally reassembled or mixed with stolen vehicles. If your RC remains valid, an unknown person can create trouble in your name by using that vehicle.
By cancelling the RC, you close this door forever.
3. Ease in Insurance and Road Tax Claims
After RC cancellation, you can inform the insurance company that the vehicle no longer exists. This allows the insurance policy to be terminated on time and you can initiate the road tax refund process easily.
Many times people leave the insurance and tax as it is, thinking that it is safe, which leads to unnecessary payments and notices later. By cancelling the RC, your record remains clean.
4. Transparency in buying a new car in the future
Want to buy a new car in the future but the registration of the old scrapped vehicle is still active in your name? It may create unnecessary hassles at the RTO or the insurance company. By cancelling the RC, the record of your old vehicle is closed and getting a new registration becomes easy.
5. Satisfaction and Mental Peace
When you know that your responsibility is now completely over, you can buy a new vehicle peacefully. There is no need to worry about any kind of hassle, notice or legal matter. Cancelling the RC is actually a small step, but it can save you from big problems in the future.
What is Required for RC Cancellation?
If you are going to get the RC of your vehicle cancelled, keep the following documents ready:
1. Car Scrapping Certificate (CVS)
This certificate proves that your car has been scrapped at an authorised scrap centre.
2. Original RC
Many times people carry only a copy, but the original document is required. If the RC is lost, then a duplicate of it will have to be made first.
3. Proof of Identity and Address
Your Aadhaar, PAN card or passport and a copy of any utility bill or ration card to prove address will be required for the RC cancellation.
4. An Affidavit
Make an affidavit stating that the vehicle has been voluntarily scrapped and you no longer use it.
Easy Process to Cancel RC After Car Scrap
If you scrap a car, then the next important task is to get the RC permanently cancelled. People often think that this process will be very long or complicated. Yet, the truth is that if you have the right information, the entire process will be quite easy.
Follow these steps to avoid any issues while getting the RC cancelled after car scrapping:
Step 1: Contact the Concerned RTO
First of all, you have to go to the same Regional Transport Office (RTO) where your vehicle was registered. For example, if you had registered the vehicle in Delhi, then go to the concerned RTO of Delhi.
If you cannot go yourself, then you can send a close relative or friend with the Authority Letter.
Step 2: Prepare the Required Documents
You must have the following documents with you:
- Original RC (Registration Certificate)
- Scraping Certificate (CVS) which you will get from an authorised scrapping facility like Spinny.
- Identity and address proof like Aadhaar card, driving licence, electricity bill etc.
- Affidavit stating that the vehicle has been scrapped and is no longer in use
- Form 26 which can be obtained from the RTO or downloaded online
If the RC is lost, a duplicate RC will have to be made first, for which a police complaint is required.
Step 3: Fill the Application form (Form 26)
After reaching the RTO, you will fill Form 26. In this, you have to give information about your vehicle like:
- Registration number
- Chassis number
- Engine number
- Date of scrapping
- Name of the scrap center
This form shows that you voluntarily want to cancel the RC of your car. Was there a bank loan on the car earlier? If yes, the NOC (No Objection Certificate) of that bank will also have to be attached.
Step 4: Verification of Documents
When you submit the form and documents, the RTO officer checks and verifies all the documents given by you.
He will check the authenticity of the scrapping certificate.Once your RC is cancelled, don’t forget to let your insurance company know. After verifying the information recorded on the RC and other documents, the further process will take place.
Note: If the documents are complete and correct, the process is done quickly. Incomplete papers can delay the work.
Step 5: Get the RC cancellation receipt
Once all the documents are verified and the process is complete, the RTO gives you an acknowledgement stating that your RC is now officially cancelled.
As this receipt is very important, keep it safely. If there is ever any query related to insurance claim, tax refund or scrapping, this acknowledgement will come in handy.
One Last Thing to Know Before Car Scrapping
Don’t worry if you scrap cars through a professional scrapping service like Spinny. It is because our team also gives you full support in RC cancellation. Our team is with you from preparing the documents to filling the form and from car scrapping till the completion of RC cancellation procedure.
How Much Time and Cost Does it Take?
Usually this process is completed in 7 to 15 days. In some states it may take a little more or less time. In some states, there is a fee of Rs. 100 to Rs. 500 for cancelling the RC. However, in many places it can also be free. It would be better to get information from your local RTO.
Pay Special Attention to These Things
Here are some things to remember while getting the RC cancelled for your car:
1. Always Get the Scrapping Done by an Authorized RVSF
Government-approved car scrapping facilities like Spinny give you the right documents and reliable process. Getting the vehicle scrapped from a local dealer can become a headache later.
2. Keep the Scrapping Certificate Safe
This is useful in future matters like insurance or road tax refund.
3. Also Inform the Insurance Company
Let the insurance company know when your RC gets cancelled. It will help you in closing the insurance policy on time and the remaining premium can be refunded.
Common Mistakes Made During RC Cancellation
These are the common mistakes you can make while cancelling your RC:
- Carrying the Photocopy of RC
A photocopy of the RC is not enough. Always carry the original RC with you.
- Forgetting to Cancel the RC
While you receive the payment after scrapping your car, the RC remains active unless you personally visit the RTO to cancel it.
- Not Taking Written Confirmation from the RTO
Always take an acknowledgement of whether the RC has been cancelled or not. Do not rely on verbal assurances.
Final Thoughts
Getting the RC cancelled is not such a huge thing. However, you cannot be negligent about it. It is your last step as a responsible and sensible vehicle owner which saves you from future trouble.
If you have scrapped your vehicle, do not be satisfied by just taking the money. Your responsibility does not end until the RC is cancelled.
FAQs on RC Cancellation After a Car Scrap
Can the RC be cancelled online?
In some states, the application process has been converted from offline to online. However, the entire procedure to scrap cars and cancel RCs is still offline in most places.
Is it necessary to cancel the RC even for an accidented vehicle?
Absolutely. Even if the vehicle is a total loss in an accident, it is still necessary to cancel the RC.
What will happen if the RC is not cancelled?
Unless de-registered, the vehicle will remain listed under your name in government records. So, tax, challan or legal problems may arise in the future.
Can someone else process the process on my behalf?
Yes, provided if the person has your written permission and documents, they can handle the procedure to scrap the car and cancel RC.
Will I get my road tax refunded if my RC is cancelled?
In some states, there is an option to get the remaining road tax refunded but again for this, the RC must be cancelled.
If I scrap the car, is it necessary to cancel the RC?
Yes, it is very important. Even after your car is scrapped, if the RC remains active, then you will be legally considered its owner. If that vehicle is used in any illegal activity in the future, then the responsibility will be yours.
What kind of problems can I face if I do not get the RC cancelled?
If the RC is not cancelled and that vehicle is found to be involved in an accident, crime or penalty by mistake, then you may get a notice from the police or the court. Apart from this, you may also be held accountable for any challan or tax related to the vehicle.
What benefits do I get by cancelling the RC?
With this process, you avoid legal hassles, get mental peace and transparency is maintained in claims like insurance or tax refund.
Does the scrap car dealer cancel the RC himself?
Generally, it is the vehicle owner’s duty to ensure that the Registration Certificate (RC) is officially cancelled. Although some dealers can help in this process, you must get the RC cancellation document certified from the RTO yourself.
Is it enough if you get the scrapping certificate without cancelling the RC?
No, the scrap car certificate proves that the vehicle has been scrapped, but the RC cancellation is the final legal proof that you no longer own that vehicle. Therefore, both the documents are complementary to each other and also important.
