Notice Informational Guide: Not affiliated with Gov.
Section 55 Compliance

Vehicle RC Cancellation & Scrap Guide

Last Updated: May 18, 2026

Deregistering an end-of-life vehicle? Learn the 2026 guidelines to surrender registration marks, file Form 24, and secure road tax rebates under the National Scrappage Policy.

👮

Delhi-NCR 10/15 Year NGT Restrictions

Under National Green Tribunal (NGT) mandates, diesel vehicles older than 10 years and petrol vehicles older than 15 years cannot operate in Delhi-NCR. Such vehicles must either be transferred out-of-state with an active RTO NOC or permanently dismantled at a MoRTH-approved facility to secure an official Certificate of Deposit (CD).

Why RC Cancellation is Legally Required

Surrendering your vehicle\'s license plate prevents a scrapped or damaged vehicle from being cloned, misused, or illegally operated by third parties. Legally, the registered owner remains financially and criminally liable for any incidents unless a formal cancellation is registered in the national Vahan registry.

RC Cancellation vs. Ordinary Transfer

Parameter RC Cancellation Vehicle Transfer
Legal Mandate Section 55 (Deregistration) Section 50 (Ownership Change)
Primary RTO Form Form 24 Form 29 & Form 30
Chassis Frame plate Cut off & physically surrendered Remains intact on vehicle
Registration Mark Permanently voided/deleted Transferred to new buyer

The Three Legal Triggers Under CMVR

1. Scrapping (End of Life Vehicle)

When the vehicle becomes mechanically structurally unsafe, fails its fitness test, or reaches diesel/petrol age limits and is surrendered to an authorized MoRTH metal-shredding center.

2. Total Loss Declaration

When accidental or environmental damage is so extensive that repair costs exceed 75% of the vehicle\'s Insured Declared Value (IDV), and the insurance firm issues a total loss certificate.

3. Permanent Exportation

When the owner permanently shifts residence out of India and intends to ship, register, and legally operate the vehicle in another sovereign nation.

RTO File Preparation Checklist

  • Form 24 Application: Completed in duplicate with clean signatures.
  • Original Physical RC: Legacy paper book or plastic smart card.
  • ✂️ Chassis Plate: The physical cut-out metal piece containing the stamped engine/chassis number.
  • Certificate of Deposit (CD): Issued by a government-approved scrapping yard.
  • Form 35 / Loan NOC: Confirming bank hypothecation clearance.
  • 🆔 Identity Credentials: Stamped Aadhaar and address proof copies.

Official RTO Deregistration Process

Step 1: Authorized Metal Dismantling

Drive or tow the vehicle to an authorized scrappage center. They will weigh the car/bike, calculate metal scrap value, cut out the physical chassis number plate, and upload the record to MoRTH portal to generate your official Scrappage Certificate.

Step 2: Counter Application at Registering RTO

Submit RTO Form 24 in duplicate along with the physical Smart Card, the cut-out chassis plate, the scrap receipt, and loan NOCs. Ensure the physical files match the central Vahan records.

Step 3: Permanent Vahan System Update

The RTO verification desk will inspect the physical chassis piece to verify it is not counterfeit. Once verified, they will trigger a system command to permanently update Vahan status to "CANCELLED".

Physical Verification Needed?

While the Vahan portal supports faceless services, certain steps may still require a physical visit to your local RTO for inspection or document submission.

Find your RTO Code & Office Details ➔

Deregistration FAQs

Is it mandatory to cancel the RC when scrapping a vehicle?

Yes, under Section 55 of the Motor Vehicles Act 1988, you must report the destruction or scrapping of your vehicle to the registering RTO authority within 14 days and apply for permanent registration cancellation to prevent legal liability and misuse.

What is Form 24 in RTO?

Form 24 is the official application form for the cancellation of a vehicle's registration under the Central Motor Vehicles Rules (CMVR). It must be filled out and submitted along with physical chassis plates and scrapping records.

What is the National Vehicle Scrappage Policy incentive?

Under the National Scrappage Policy, presenting a valid "Certificate of Deposit" from an authorized scrapping facility waives the registration fee on your next new vehicle purchase and provides up to a 25% road tax concession.

Can RC cancellation be completed if the vehicle is on a bank loan?

No. If a bank hypothecation (HP) is active on the vehicle, you must first secure a No Objection Certificate (NOC) and submit Form 35 to terminate the hypothecation record before the RTO will accept a Form 24 cancellation application.

Was this RTO guide helpful?